What is Micro-enterprise?

 

 

Micro-enterprise is hardly a new concept. In some countries, Micro-enterprise has a fancy definition, but in developing nations, like Haiti, Uganda, and India; it means survival for many families.

By definition a Micro-enterprise is a small business with minimal employees and minimal capital. In a developing country, necessity compels Micro-enterprises to represent the vast majority of the small business sector. Due to a lack of formal jobs and training available to the poor, Micro-enterprises add value to the economy by creating micro-jobs, enhancing income, and lowering the overall cost of business.

Families in developing countries who receive shoes, clothes, and handbags from Funds2Orgs collection drives are families who have little to no income or livelihood. These items, and their ability to be sold or repurposed, represent a Micro-enterprise opportunity for individual families and their communities. It is the only possibly for true self-sustainability.

In a nutshell, the Funds2Orgs Micro-enterprise works like this:

1. US organizations and nonprofits collect shoes, clothes, and handbags that are picked up by Funds2Orgs and sent to hub operators in developing nations.

2. Hub operators pay Funds2Orgs a small operating fee, then sell the collected items to vendors with a small mark-up.

3. Vendors clean and repair the items and begin selling for a profit margin.

Micro-enterprise represents one of the most effective ways to lift many families out of the extreme poverty in devastated economies.