What is Micro-enterprise?
Micro-enterprise is hardly a new concept. In other nations, Micro-enterprise may have a fancy definition, but in developing nations like Haiti, Uganda, and India, it is a means to survival for many families.
Families in developing countries that will receive shoes, clothes and handbags from Funds2Orgs collection efforts are families who have little to no income or livelihood. These items, and the ability for them to be resold, represent Micro-enterprise opportunities for these families and their communities- and possibly the only chance at true self-sustainability.
By definition a Micro-enterprise is a type of small business with minimal employees and minimal capital. In a developing country, Micro-enterprises comprise the vast majority of the small business sector out of necessity. Due to a lack of formal jobs available for the poor, Micro-enterprises add value to the economy by creating jobs, enhancing income and purchasing power, as well as lowering the overall cost of business.
In a nutshell, the Funds2Orgs Micro-enterprise works like this:
1. US organizations collect shoes, clothes and handbags that are picked up by Funds2Orgs and sent to hub operators in developing nations.
2. Hub operators pay Funds2Orgs an operating fee and then sell the items to vendors with a small mark-up.
3. Vendors clean and repair the items to good quality and begin selling for profit margin.
Micro-enterprise represents one of the most effective ways to lift families out of the extreme poverty in devastated economies. Vendors are able to earn money for food and earn a sustainable source of income.