Perspectives on self-employment as a viable option for Vermont TANF recipients.

Microenterprise development (MED) in the United States is a holistic approach that embraces poverty alleviation, human development, and economic development strategies. This study gathered staff perspectives from welfare and MED agencies in Vermont on self-employment as an option for welfare recipients to meet their work requirements and move off of public assistance. Interviews were conducted with Vermont Reach-Up Financial Assistance district managers and coordinators of the Vermont Micro Business Development Program (MBDP).

Findings show that client characteristics influence self-employment viability, including strengths, barriers, length of time on Reach-Up, and location. District managers are supportive of self-employment for clients yet support can be inhibited by the need to get clients off of the welfare system as quickly as possible. MBDP staff noted receiving various levels of support for self-employment from Reach-Up staff, with support level and frequency of client referral related to interagency relationships established. District managers are possibly more supportive of self-employment than case managers. Vermont legislation is supportive of self-employment, however work phase time limits pose a barrier. In addition, the federal “work first” philosophy and use of federal minimum wage to determine benefit amount have negative impacts on self-employment. Suggestions for improving agency relationships, communication, and education, and recommendations to simplify and change legislation to further support self-employment are discussed.

Schmidt, M.C. , Jewiss, J, Koliba, C, and J. Kolodinsky. (2006). Perspectives on self-employment as a viable option for Vermont TANF recipients. Unpublished Master’s Thesis. University of Vermont.

The impact of microenterprise training on low-income clients.

This study examined the impact of microenterprise development (MED) programs on low-income individuals using a case study of 140 clients of the Vermont Micro Business Development Program who participated in a statewide telephone survey. The study also examined variables that are associated with change in client reliance on public assistance.

Outcomes achieved include: access to capital, positive attitude changes, business start up and growth, job creation, increased household income, decreased reliance on public assistance, and satisfaction with services. Significant relationships were found between certain client characteristics and outcomes and decreased reliance on public assistance.

Cranwell, M., J. Kolodinsky, and B. Whitney. (2006). The impact of microenterprise training on low-income clients. Journal of Extension, 44(2).