Since the 1980s, microenterprise development programs have proliferate
d in the United Stares, where they are widely praised as strategies fo
r economic development and poverty alleviation, especially for low-inc
ome women and welfare mothers. Based on research in a highly respected
urban center for women, this article argues that microenterprise deve
lopment is more detrimental and problematic than it is purported to be
. Two reasons ore isolated First, gender constraints mean women tend t
o choose small-scale, undercapitalized, curd barely profitable ''pink-
collar'' businesses, largely home-based operations based on work women
ape already doing as part of their gender-specific role. Second, micr
oenterprise training programs reinforce this business segregation by d
iscounting the sociocultural conditions women bring with them to busin
ess and instead emphasizing the personal growth of individuals. The re
sult is that women are, encouraged to maintain their economic vulnerab
ility and social peripheralization rather than become part of the main
stream business world.