Very small businesses, otherwise known as “microenterprises,” play vital roles in the local, state, and national economies. As engines of employment, entrepreneurship, and innovation, microenterprises can be highly successful vehicles for inclusive and robust economic growth. However, many such businesses are constrained by lack of access to credit. Microenterprise owners and entrepreneurs may lack the credit or operating history needed to obtain a traditional small business loan at a commercially viable rate of interest, or the loan amount requested may be too small for a traditional lender to consider. Undoubtedly, a great many entrepreneurial opportunities are lost for lack of viable financing.
Harvard Law School Mississippi Delta Project, "Policy Options for Microlender Funding in Arkansas" (2012). Delta Directions: Publications. 9.