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Microenterprise Development Program Success: A Path Analysis Of Factors That Lead To And Mediate Client Success



    (Center for Rural Studies, University of Vermont, 207 Morrill Hall, Burlington, Vermont 05405, USA)


    (Community Development and Applied Economics, University of Vermont, 202 Morrill Hall, Burlington, Vermont 05405, USA)


Through a path regression analysis of data from the Vermont Micro Business Development Program, this study examines the relationships between client characteristics, program activities, interim outcomes, and impacts, to understand factors that lead to and mediate client success in microenterprise development programs and as entrepreneurs. Statistics demonstrated excellent model fit to the data. The interim outcome of improved personal well-being was related to more sources of capital, course completion, being partnered and younger. Starting a business was related to having more financial resources and mediated by improved well-being. Clients who experienced an increase in income had previous business experience and an increase in assets. Increased income was mediated by improved well-being and business start. Reduction in public assistance was related to course completion, more sources of capital, not being in poverty, and increased assets. Increased assets were related to more education, not being in poverty, and more sources of capital. Being older, more sources of capital, a larger family, and improved well-being led to job creation. Overall, access to more financial resources enabled clients to meet personal and business goals and work toward self-sufficiency. The results suggest implications for public policy regarding business training and loan financing.

Suggested Citation

  • Michele Cranwell Schmidt & Jane M. Kolodinsky, 2007. "Microenterprise Development Program Success: A Path Analysis Of Factors That Lead To And Mediate Client Success," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 47-69.
  • Handle: RePEc:wsi:jdexxx:v:12:y:2007:i:01:n:s1084946707000551
    DOI: 10.1142/S1084946707000551

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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Bong Geul Chun & Hanwook Yoo, 2015. "Effects of government subsidies on investment by small companies," Chapters, in: John Karl Scholz & Hyungypo Moon & Sang-Hyup Lee (ed.), Social Policies in an Age of Austerity, chapter 11, pages 284-296, Edward Elgar Publishing.
    2. Samia Amin & Mary Anne Anderson & Christopher Jones & Kristen Joyce & Natasha Nicolai & Mikia Manley & Irma Perez-Johnson, "undated". "Creating Jobs When You Can't Find Any: Implementation Lessons from a Self-Employment Pilot Program for the Unemployed," Mathematica Policy Research Reports 83e88135474b48b79b9890d96, Mathematica Policy Research.
    3. Dan-Ching Huang & Tzong-Ru Lee & Per Hilletofth & Ching-Kuei Kao, 2016. "Creation of a step-by-step process in the pre-startup of a micro business," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 15(1), pages 43-60.
    4. John Karl Scholz & Hyungypo Moon & Sang-Hyup Lee (ed.), 2015. "Social Policies in an Age of Austerity," Books, Edward Elgar Publishing, number 16524.
    5. Mary Anne Anderson & Samia Amin & Irma Perez-Johnson & Caroline Massad Francis, "undated". "What Does $1,000 in Seed Capital Buy? Emerging Lessons from the SET Program’s Offer of Microgrants for Business Start-Ups," Mathematica Policy Research Reports 1af8dc28b1524531a6421c18d, Mathematica Policy Research.


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