Microenterprise as an exit route from poverty: Recommendations for programs and policy makers

The objective of this study is to shed light on whether and how microenterp rise programs can be used as an economic development strategy to enable low -income people to achieve self-sufficiency through self-employment. Our fin dings provide little support for the notion that hard work and a small loan are sufficient ingredients for business success. Viable small firms are us ually headed by well-educated owners and/or those possessing specific skill s that serve as a basis for successful business creation and operation. Pot ential entrepreneurs lacking assets, skills, and support networks are unlik ely to support themselves through self-employment earnings alone. As a pove rty alleviation strategy, microenterprise is not a panacea. Nevertheless, p rograms targeting the poor who do have skills, resources, and support netwo rks can be useful vehicles for helping some to escape poverty.