Our nation’s smallest businesses are a major source of U.S. employment, and one possible solution to our nation’s struggling economy, according to the Association for Enterprise Opportunity (AEO). AEO, the national leadership organization and voice of the U.S. microenterprise movement, is hosting the National Summit on Entrepreneurship May 20 – 23 at the Hyatt Regency in Anaheim, California, and will oversee a series of plenary sessions, workshops and presentations on a broad array of topics, including their stance that the practice of microenterprise development may be a viable booster for our struggling economy.
Despite low employment rates in recent years, microenterprises - businesses with five or fewer employees – added an average of 900,000 new jobs per year from 2000 to 2005, according to AEO statistics. The latest available data shows that 4.5 million new jobs were created during that time period. AEO estimates there are more than 24 million microenterprises currently operating and that they represent 87% of all businesses and 18% of all private employment.
“It is significant that microenterprises continued to create new jobs even during the 2001 recession,” said Amy McKenna Luz, AEO president and CEO. McKenna Luz also noted that in 2002, when other sectors such as the telecommunications and auto industries were laying off workers and the national unemployment rate reached 5.8 percent, microenterprise created close to one million new jobs. “Now, as the U.S. faces another economic downturn, microenterprises are important to local economies. In addition to creating jobs, they recycle significantly more money back into the community compared to large national organizations,” said McKenna Luz.
In California, where the Summit is being held, microenterprise development has already had a dramatic positive effect over the past several years. More than 552,000 new microenterprise businesses were launched in California during the five-year period of 2000 – 2005. Those businesses were responsible for the creation of more than 618,000 new jobs during that same time period.
A broad array of subjects contributing to the umbrella focus on microenterprise development will be discussed at the Summit. Many of the nation’s leaders involved in microenterprise and community economic development will be on hand to share ideas, network and train with a multidisciplinary focus on the national microenterprise movement and how it is helping to empower America’s economy communities.
The Summit will also feature special pre-event forums on critical topics that include rural economic development, leadership, coaching, and new programs that assist ex-offenders with a fresh start through self-employment.
The Summit is co-hosted by the California Association for Microenterprise Opportunity (CAMEO) and Citi is Lead Sponsor. Other sponsors include Capital One, US Bank and Union Bank of California.
About AEO
The Association for Enterprise Opportunity (AEO) is the national leadership organization and the voice of the U.S. microenterprise movement. Its members include non-profit organizations who provide services that include lending, training, technical assistance and mentoring to current and aspiring entrepreneurs often in underservedpopulations such as immigrants, women heads of households, Native Americans and others. For nearly 20 years, AEO and its members have helped more than two million such entrepreneurs support themselves and their families, and contribute to their communities through business ownership. To learn more, visit www.microenterpriseworks.org
Media: To receive more information, press credentials to the event or to arrange advance or on-site interviews, please contact Paul Williams at 949-916-6880 or medialine2@aol.com
Contacts:
Paul Williams, 949-916-6880
MediaLine2@aol.com
