Microbusinesses: Exploring a Proven Tool for Wealth and Equity
Business ownership has long been a path to asset building and economic mobility. The value of American microbusinesses accounts for nearly one-fifth of all household wealth in the country, making it the largest source of wealth next to homeownership. More than 90% of small businesses have four or fewer employees, including the self-employed. These “microbusinesses” include cafes, tutoring services, child care providers, independent contracting agencies and more, most of which serve their local communities. Compared to small business owners more broadly, microbusiness owners tend to be younger and are more likely to be women and people ofcolor.