Microenterprise Development Resources in Michigan:

Assessing Coverage, Access, and Outreach

Claire Glenn, MNM Coordinator

Tracy Pierce, MNM Research Assistant

Thank you

Michigan State University Center for Regional Economic Innovation

What is Microenterprise?

• Very small business

• Five employees or fewer

• $35,000 or less

Why Microenterprise?

• Create jobs

• Increase the tax base

• Promote local purchasing and hiring

• Place-making

Microenterprise in Michigan

95%

91%

88%

Association for Enterprise Opportunity.

http://www.aeoworks.org/pdf/states/Microbusiness_State_Fa

ctsheet-MI.pdf

Support for MicroenterpriseMicroenterprise Development Organizations(MDOs) provide:• Training• Technical Assistance• Microenterprise Lending

Microenterprise LegislationWhy does this research matter?

• Microenterprise Amendment to the Michigan Strategic Fund

• Self-Employment Assistance Legislation

Research and Methodology

• MNM members

• MicroTracker census

• 22 out of 29 MDOs in Michigan

• Two rounds of surveying

Results: Coverage

Service Provided Number of MDOs

Technical Assistance 20

Training 13

Lending 10

Total Respondents 22

Results: Coverage

Location Number of MDOs

Metro Detroit 6

Grand Rapids 2

Lansing 2

Ann Arbor 1

Benton Harbor 1

Marquette 1

Urban bias of MDOs providing microlending services

Results: Online Tools

MichiganMicro.org

Results: Outreach Strategies

Strategy Ranking Points

Word of mouth 33

Referrals 27

Presentations/speaking 26

Website 12

Hosting events 10

Social media 9

Email/newsletters 5

Radio/TV 1

Results: Outreach StrategiesStruggle to reach communities:• Specific industries• Specific neighborhoods• Specific demographics

"Outside of existing networks, there is no way to reach the vast majority of clientelle."

Solutions and Conclusions:(1) Expand Service Coverage• Policy advocacy

o Microenterprise amendment to MSFo Self-Employment Assistance legislation

• MDO partnershipso EDCso Chamberso Commercial Lenderso Other MDOs

Solutions and Conclusions:(2) Broad, Low Cost Outreach• Grassroots marketing

o Coin canisterso Cause-related pin-ups

• Engaging social media

• Television and radioo Public Service Announcements (PSAs)o Local newso CC programs

Solutions and Conclusions: (3) Increase Funds• Community Reinvestment Act (CRA)

o Educate CRA officerso Report compliance and non-complianceo Collective clout

Solutions and Conclusions:(4) Improve Brand• Events

o Connecting Entrepreneurial Communities Conference

• Resource directory and cmapso Partnershipso Networking

Q&A with Tracy and Claire