Micro Enterprises In Inner-City Communities: Current Challenges And Viability

Abstract

Supporting micro enterprises within inner-city communities is a viable strategy to promote economic development, combat poverty, and alleviate social costs. Some authors suggest that micro entrepreneurship is essential to maintain a healthy economy within low-income communities. This paper is aimed at highlighting the profile and functioning of micro enterprises in inner-city Buffalo, New York with regards to aspects such as size, financial and non-financial assistance, goals and barriers experienced by micro entrepreneurs. Data from an exploratory survey of 100 micro enterprises suggest that micro entrepreneurs encounter several problems that impact negatively on their profitability and viability. The data also suggests that these entrepreneurs are constrained not only by financial factors but also non-controllable factors such as the economy of the city, availability of reliable labor, and insurance requirements. This paper concludes with a brief discussion of the implications of the survey findings for developing strategies to address issues facing micro enterprises in inner-city communities