The Emerging Immigrant Market and Microenterprise

This note focuses on the emerging immigrant market in the United States (U.S.) and highlights the performance of microenterprise development programs. The note states that:

• Immigrants have proven to be more entrepreneurial than native-born residents, despite facing barriers that other small businesses do not.
• However, microenterprise development programs have responded to these high potential, emerging business markets by:
  • Engaging in special outreach, using institutional and personal bridges to this market;
  • Incorporating training content that introduces immigrants to business practice and financial practice in the U.S.;
  • Offering training in relevant languages, using participatory methods that support adult learning, and addressing important personal and cultural issues;
  • Offering safe environments for undocumented entrepreneurs;
  • Presenting financial products that help clients build credit that can act as a stepping stone to business credit;
  • Offering business credit, drawing on alternative underwriting and addressing risk.

The guide concludes that funders should:

• Target funding for these programs;
• Invest in product development and translation of materials for specific communities;
• Help programs address capital gaps;
• Foster connections between micorenterprsie organizations, and mainstream financial service providers and economic development agencies.