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47 C H A P T E R 3 Who Wants to Be a Microentrepreneur and Why? —Co-authored with Fred Ssewamala Many Americans, at one time or another, have thought about opening a business. Some are struck with an inspired business idea. Others face dead-end jobs, an insufferable boss, or an inflexible work environment. In the end, most decide that the great business idea is too risky, and the job, while not perfect, is a better bet than trying to run a business. For a variety of reasons, the entrepreneurs in this study did not back out. For some it was an opportunity that presented itself, and they decided to take a chance. For example, Terri saw microenterprise as an opportunity to get ahead, even though the idea of being a business owner had never occurred to her before: “I was in barber college just about ready to graduate [when] I got a letter in the mail with [my] welfare check that said that they had the [microenterprise] program and they’ll help you start your own business. So that’s the only thing that gave me the idea. That was in 1990, and I haven’t been on welfare since.” For Terri, the idea of operating her own business was somewhat serendipitous, offering a way for her to use her new skills, a way that she had not previously considered. Others decided to open a business primarily because of bleak job prospects. Mary, for example, saw in microenterprise a way to avoid a fruitless job search: “I was going through a divorce, I was on welfare, baby-sitting and all, child care and stuff. What would I do? I didn’t want to work in a factory and there wasn’t really any other opportunity around this area at the time.” So when she learned about the microenterprise development program (MDP), she decided to give her idea of a small liquor establishment a try. Other entrepreneurs, especially those living in rural Arizona and Arkansas and in other areas where scarce jobs were poorly paid and often temporary, had similar experiences. Self-employment presented a possible alternative. Terri and Mary had not thought much about opening a business prior to learning about the MDP, but most of the entrepreneurs had given business ownership a great deal of thought. Possessed with a drive to own a business long before they heard of an MDP, they seized the chance to get some assistance. For example, Thomas’s desire to own a business was deeply ingrained by the time he had opened his catering service: “I wanted to try to start something on my own. It has been real successful so far. . . . Hustling has always been in my blood.” Likewise, Glenn had always wanted to have his own business: “I’ve been thinking about owning my own business since I was seven. I’ve always loved being my own boss . . . I don’t like working for other people, and operate better if I have no one to answer to.” The Microentrepreneurs The microentrepreneurs whose stories fill these pages are women and men, old and young, White, African American, Latino/a, and Asian. Some barely finished elementary school, while others had attended some college. Some live in rural areas and others in urban and suburban areas throughout the United States. Their businesses vary from small home-based resale enterprises to storefront retail establishments, to semi-professional and professional services. Some businesses are successful; others are not. But these entrepreneurs share three things: a desire to have a business, involvement in one of a growing number of MDPs, and low household income. This chapter introduces the eighty-six microentrepreneurs and explores their reasons for business ownership. The entrepreneurs live in the seven states where the SELP (Self-Employment Learning Project) microenterprise programs are located: Arizona, Arkansas, California, Illinois, Iowa, Minnesota, and North Carolina. Compared to the U.S. population with low incomes, the SELP entrepreneurs are somewhat more likely to be non-white, female, and to have more education and higher incomes (Table 3.1).1 African Americans and Latinos of Mexican descent make up almost half of the sample. Educational attainment is higher than among the poor generally, likely a result of self-selection. Seventeen (29 percent) have a high school degree, GED, or vocational degree. About a third had attended some college, although only eighteen (16 percent) had a college degree or more.2 When the study began in 1991, the...

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