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Microenterprise Programs in U.S. Inner Cities: Economic Development or Social Welfare?

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  • Lisa J. Servon

    (Rutgers University)

Abstract

The microenterprise strategy marries elements of economic development and social welfare strategies and agendas. This article uses case studies of three inner-city microenterprise programs to demonstrate that the results of this blending are over-whelmingly positive. At the same time, working in the interstices of the economic development and social welfare fields is complex, and the results that programs produce do not fit easily into traditional outcome categories. The programs studied do more to help those who exist at the margins of the mainstream economy than those who are completely cut off from the economic mainstream. They help change the mind-set of people by giving them the hope they need to take charge of their own lives. By helping people begin to think strategically about creating better futures for themselves and providing them with the tools necessary to make that happen, these programs shift the focus of policy from maintenance to investment.

Suggested Citation

  • Lisa J. Servon, 1997. "Microenterprise Programs in U.S. Inner Cities: Economic Development or Social Welfare?," Economic Development Quarterly, , vol. 11(2), pages 166-180, May.
    • Handle: RePEc:sae:ecdequ:v:11:y:1997:i:2:p:166-180
    DOI: 10.1177/089124249701100205
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    References listed on IDEAS

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    1. Timothy Bates, 1995. "Why do Minority Business Development Programs Generate so Little Minority Business Development?," Economic Development Quarterly, , vol. 9(1), pages 3-14, February.
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    Cited by:

    1. Helen M. Haugh & Alka Talwar, 2016. "Linking Social Entrepreneurship and Social Change: The Mediating Role of Empowerment," Journal of Business Ethics, Springer, vol. 133(4), pages 643-658, February.
    2. Ping-Ann Addo, 2017. "‘Is It Entrepreneurship, or Is It Survival?’: Gender, Community, and Innovation in Boston’s Black Immigrant Micro-Enterprise Spaces," Societies, MDPI, vol. 7(3), pages 1-19, August.
    3. Timothy Bates & Lisa Servon, 1998. "Microenterprise As An Exit Route From Poverty:* Recommendations For Programs And Policy Makers," Working Papers 98-17, Center for Economic Studies, U.S. Census Bureau.
    4. Rashidi, Kamran & Cullinane, Kevin, 2019. "Evaluating the sustainability of national logistics performance using Data Envelopment Analysis," Transport Policy, Elsevier, vol. 74(C), pages 35-46.
    5. Shirazi, Nasim Shah, 2012. "Targeting and Socio-Economic Impact of Microfinance: A Case Study of Pakistan," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 20, pages 1-28.
    6. Aggarwal, Raj & Goodell, John W. & Selleck, Lauren J., 2015. "Lending to women in microfinance: Role of social trust," International Business Review, Elsevier, vol. 24(1), pages 55-65.
    7. Dr. J. G. Sri Ranjith & Dr. O. G Dayaratna Banda, 2014. "Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(6), pages 38-50, June.
    8. James C. Brau & Gary M. Woller, 2004. "Microfinance: A Comprehensive Review of the Existing Literature," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 9(1), pages 1-28, Spring.

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