Micro Businesses as an Economic Development Tool: What They Bring and What They Need

Abstract

Micro businesses, defined as having ten employees or less, represent a substantial sub-segment of all small businesses. As such, they are credited as a significant contributor to economic growth of a community. This research focused on understanding the micro business owner, their contribution to the local economy in terms of profits, jobs, and their ability to bring outside dollars into a local economy. As the major economic engine in many areas, especially in rural areas, the success of the micro business is important to a local community's development and progress. The research also evaluated the support needs of the micro business owner during start-up and on-going operation. Most often, the business owners expressed a need for help with marketing and financing. The research also analyzed what agencies these micro business owners have turned to for help. The study supports the idea that a local economic development strategy must include development of the micro business segment and suggests ways to tailor such assistance efforts and programs.