economic growth strategies

Microbusinesses in economic growth strategies

A Detroit-based plumbing business named Benkari was launched by Adrienne Bennet in 2008, who was the first black female licensed master plumbing contractor. She knew that she needed to invest in the new estimating tool to bid on the large projects, but she failed to manage the financing. This is one of the common problems for microbusinesses that cannot find financing.

She did not get her financial support from the traditional lender; in fact, the business was secured credit from the nonprofit community development finance institution, which the grant capital had sourced from the philanthropies. With this funding, she secured one of the most significant contracts in the company’s history. As a result, she grew her business over time, and now she generates 2 million USD per year.

It was Benkari’s story on how intentional strategies can uplift the microbusiness in underserved communities can benefit local economies as well. But remember, this will take time since a microbusiness requires strategic planning, income-generating resources, and much more.

Let’s discuss how micro-business can be included in the economic growth rate.

  1. Understand the Microbusiness that supports growth

While Benkari wanted to increase her construction and plumbing services, she faced limited access. And she has lacking access to private capital support and bank support.

– Little to no investment or social network-based investment

– Not able to access public dollars; for instance, small business administration loans

– Higher insurance costs

– Public safety concerns plus underinvested infrastructure

– Do not have enough professional network

– Work challenges

The community economic developers need to create strategies so that they engage with the micro business or some intentional work. Then, once you understand the whole process and its future output, it would be easier for the person to maintain the business.

The small business challenge of NEI’s was the only way for micro-businesses to support in the metro area of Detroit.

However, practical assistance providers offer financing plus cash flow advice, legal, accounting, and accessible micro-and small loans, often in the nonprofit sector.

  1. Build and boost a support network to help micro-businesses grow

– Practical assistance that provides expertise around legal issues, marketing, accounting, real estate, plus other business areas.

– Access to affordable capital via microfinance plus community development financial institutions.

– Mentoring or expert coaching from the people who understand the microbusiness opportunities and challenges.

The investor community should understand and consider these things to support the essential.

And these things are the best delivered via the network of business support organization that small business actually needs. The business support organization also includes some key factors.

– To support underserved small businesses, a shared mission.

– To increase the business support, a shared value around inclusive practices.

– In order to make or receive referrals, actively working hours.

– Regular meetings to share ideas and so on.

Moreover, the business support organization played a vital role with the NEI through –

– Practical technical assistance

– Capacity-building grants and resources

– Incentives to operate as a cohort

– Events and convenings

– Trust and connections

– Information sharing

– Marketing and storytelling

– Access to nonfinancial resources

  1. Elevate the conversation around microbusiness support

As a community investor developer, you need to know a few question-answer to develop the strategies:

– What the business owner has to do when they wanted to grow.

– Whether the small business owner able to generate sufficient revenue for its workers?

– If the pools of resources support small businesses to have a better understanding of the Main Street Microbusiness?

A person needs to figure out the elevate of small businesses as well as the conversation about them. Allocating resources with some data-drive work is an excellent perfection to understand better plight to put more micro enterprises on the trajectory of growth that moves from micro to small business and much more.