What defines a microenterprise you ask? Well, it is a business with:
- five or fewer employees;
- $35,000 or less required to start the business;
- most are owned and run by one person, a sole proprietorship; and
- sometimes they grow into something bigger and employ family members or even bigger
The Child Care Bureau put together a guide to "raise awareness of and provide resources for the child care community and microenterprise development field about small business and asset-building opportunities for child care providers and aspiring or existing business owners" (National Child Care Information and Technical Assistance)
The guide mentions Mirco-loans and IDAs as options for funding.
Who is a Micro-loan for?
It is a loan that:
- is less than $25,000;
- for people who start their own business;
- usually cannot access traditional forms of financing; and
- high risk business start-ups and low income individuals.
Who offers these loans?
microenterprise development programs; and
What is a Microenterprise program?
Typically a program run by not-for-profit organizations that provide different services to the microenterprise business whether it be trainings, support or micro-loans. Examples of these organizations are: community action agencies, women's business centers, and social service organizations. The guide provides more examples.
Microenterprise Directory: http://nccic.acf.hhs.gov/poptopics/micro-directory.html
What is an IDA?
Individual Development Account (IDA) an opportunity for low income individuals to save money with a matching program.
Who offers the IDA?
Not-for-profits, community organizations and local governments.
Income, Earnings, Net Worth, and Credit History
For details regarding the above, visit the guide on NCCIC's website http://nccic.acf.hhs.gov/poptopics/business-child-care.html. It has additional online business resources for you to check out.
National Child Care Information and Technical Assistance. (n.d.). Child Care as a Business (Microenterprise) Resource Guide for Child Care Providers/Business Owners. Retrieved October 2010, from National Child Care Information and Technical Assistance Center: http://nccic.acf.hhs.gov/poptopics/business-child-care.html