Microbusinesses demonstrate tenacity with survival rates of 56 - 90 percent Survival rates compare very favorably to the general population of small businesses. The U.S. Small Business Administration estimates that 47 percent of small businesses are still operating after four years. During the five years of the SELP study 57 percent of the entrepreneurs increased their household income. This link between microenterprise development and poverty alleviation merits a closer look. Progress out of Poverty The path out of poverty is a rocky one.
Progress is followed by steps back, tough tumbles and occasional leaps ahead.
MBDP clients and Job Start borrowers are no exception. MBDP staff help clients overcome obstacles including health crises, transportation issues, family emergencies, and others as they work towards economic self-sufficiency. Box 2 highlights the gains made by poor entrepreneurs in the SELP study. As is true of many households, Vermonters rely on more than one source of income. JSBS showed that Borrowers patched self-employment with outside employment and a variety of other sources.