Summary

	Microenterprise development helps bring capital to those in need.
	Business sense and social consciousness make you a good candidate.
	Domestic and global careers are possible in this field.

What is Microenterprise Development?

Microenterprise development is a growing career field that involves providing entrepreneurs, particularly women and the poor, with greater, more reliable access to loans and business development services to start or expand their small businesses. As ACCION International, a leading microcredit organization explains, "micro" loans can make the difference between mere survival and a decent life. With capital, people can grow their businesses and they can earn enough to afford basics like running water, better food and schooling for their children."

More Information The MicroEnterprise Innovation Project: A joint effort of USAID, The Microenterprise Innovation Project is the US Agency for International Development's (USAID) initiative to support technical and financial assistance, research and training on best practices in microenterprise development and finance. InterAction: a nonprofit umbrella organization of NGOS involved in international development work. Microcredit Summit: Close to 3,000 people representing 1,500 organizations from 137 countries attended this 1997 forum, based in Washington, DC , to launch a nine-year campaign. Its goal is to reach 100 million of the world's poorest families with credit for self-employment and other financial and business services by 2005. Accion International: A well-known microcredit organization that operates in the US and Latin America, has an excellent Web site. It has links to other organizations, publications to order, and information about their projects. They also list available jobs with their organization. The Small Enterprise Education and Promotion (SEEP) Network is an association of over 48 North American PVOs which support micro and small enterprise programs in the developing world. Their Web site explains the network, how to join, and lists many publications on the subject of microenterprise development.

Am example of a microenterprise client might be a women's cooperative selling handicrafts. A loan could help buy materials that would make production easier or better planned. Or, it might assist someone set up a small street vending food service that would help someone be able to provide for his or her family. It might also involve the establishment of a revolving loan fund in a small village. Providing access to a small amount of capital -- just a few hundred dollars -- makes a huge difference in the lives of many poor people trying to start a business and earn some income.

Who Works in Microenterprise Development?

Individuals generally enter this field because of a desire to "make a difference" in the lives of poorer people. This social consciousness, as it is called by many, is an important attribute to someone who may work in this field, but beyond that, many skills are needed to forge a career in microenterprise development. The field is becoming more sophisticated and the need for a strong financial and economic backgrounds is critical. Many microenterprise professionals have prior banking experience, particularly in the areas of lending and credit.

Additionally, a minimum of two years prior experience in a developing country -- usually through Peace Corps or the like -- is generally required. A graduate degree in economics, business administration or international affairs is also important.

One option to consider, if you would like to enter the field but don't have the international experience, is to start domestically. Encouraged by the success that microenterprise models have had abroad, there is a trend to fund microenterprise projects in the United States. For example, Boston-based ACCION International opened a New York office that is domestic in focus. Community Development Corporations (CDCs) around the country are also involved in microenterprise work.

What is a Typical Job Like?

People involved in microenterprise work generally work for nonprofit organizations or multilateral agencies, like the World Bank. Job titles include: microfinance specialist, loan officer, or simply, program officer.

Daily work involves meeting with prospective borrowers and entrepreneurs, and assisting them with loan applications and technical assistance for their businesses. You might also conduct analyses of these businesses to assure viability, and structure loan terms that work for each individual client. Many organizations also do evaluations and thus conduct follow-up visits to ensure that funds were used for their intended purpose and payments are able to be made in a timely fashion. Often organizations help individuals connect to similar small business owners to form supportive networks.

Trends in the Field

According to Jeremy Black, a microenterprise professional, "The overall trend or push by international donors is moving toward increasing the financial sustainability of microfinance organizations so that they cover more of their operating costs with the revenue that they generate on loans and fees to their clients. USAID, for example, is a major proponent of this goal."

The increasing complexity of the field, noted above, is also important to consider. "Major international microfinance and microenterprise development organizations are becoming increasingly sophisticated structures, some with holding companies combining for- and nonprofit entities. A few are attracting equity investors. Some are becoming increasingly adept at conducting sector or subsector analyses in order to encourage microenterprise development in a sector with growth potential, or in order to encourage cluster development," Black asserts.