July, 2021 - JumpStartFund

Overview of Microenterprise Development

26 July 2021 JumpStartFund 0

In the USA, microenterprises exist in almost every community, from construction businesses to restaurants. These micro-enterprises provide millions of families in rural areas with jobs […]

Nonprofit Program Advantages

1 July 2021 JumpStartFund 0

There are many key elements in the advantages and disadvantages of running nonprofit organizations. In this article, we will focus on the advantages of nonprofit […]

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Teaching Children to Become Entrepreneurs

Microenterprise DevelopmentThe days of encouraging young kids to start thinking about universities and what they would like to become as an employee when they grow up are long gone. Nowadays, it’s important to teach children about becoming entrepreneurs and business owners in order to be able to take care of themselves and create something that is profitable. Teaching children about self-employment can also create more job opportunities for the future of others. With microenterprise development, it has become easier for the younger generation to take on their own small businesses in order to be self-efficient in financial decisions. It makes it easier for parents to not have to break the bank in order to help their children create their businesses. Microenterprise development can help a child to develop their talents and ideas from a young age to be able to use funding when they are ready. There are many difficulties arising from bringing up children, especially with newborns. Even looking at how important sleep training is for babies and young kids, there is a lot that parents need to consider that are important for a child’s future. Sleep training provides a child with achieving good sleep by their own means and going back to sleep if they wake up in the middle of the night. Just as with sleep training being an important part of a kid’s wellbeing, training them about possible future self-employment can help them with experience and developing their talents. The monthly allowance is a great way to teach them about the responsibilities of creating small business ideas. An allowance teaches them about responsible financial decisions and how to spend and make a living for themselves. Starting out with a lemonade stand in front of the yard and later moving it to busier markets or streets with more feet is an example of teaching them about business decisions. [...]

How to Market an Idea for Baby Products

Microenterprise DevelopmentEvery year the global sales for baby products rise further into Billions of dollars. If you are someone with great product ideas, then it might be a good idea to start thinking about a baby product. Just thinking about the Ferber method of training children to sleep can make us realize how important it is to provide safe baby products that can help parents in caring for their babies. The Ferber method taught parents techniques on how to get their babies to sleep through the night and get to sleep more easily. With the release of the book that introduced the Ferber method, there have been many product releases on helping babies to sleep. These products range from high-tech sleeping machines to blackout nursery curtains. Starting small and using microenterprise development can help to bring the product to reality without breaking the bank. To market a baby product in today’s world where parents are looking for any means to help them care for their babies in their busy lives is not an easy task with so many products out there. Thinking about the ferber method we can understand that the book did not nearly make as many sales as any sleeping products on the market. Once you have your idea, it’s important to look into how much this product will cost to manufacture. Although baby products are fairly expensive, it’s important to be able to provide a cheaper product that parents can trust with safety and quality. Once this is done and you have your prototype it’s important to start marketing to consumers. The best way is to get your product into local baby shops or to demonstrate the products at bridal shows and baby showers. Giving away free products is always a way to catch some first-time customers. [...]

Overview of Microenterprise Development

Microenterprise DevelopmentIn the USA, microenterprises exist in almost every community, from construction businesses to restaurants. These micro-enterprises provide millions of families in rural areas with jobs and security towards a better life. Many entrepreneurs have great business ideas but do not have the needed funds or financial help to make their ideas into reality. According to recent research, most new businesses that employ more than 5 workers do not survive for more than 2 years, and only half survive at least 5 years. Microenterprise development helps these small businesses to survive. The movement has grown in response to unemployment and poverty. A small business requiring only 5 employees and do not need more than $35 000 for a startup can apply for microenterprise development. According to recent studies, there are more than 20 million microenterprises currently active in the US, providing roughly 16.5% of employment in the country. This is not including farm employment. The impact of the movement has greatly advanced the national economy, especially towards poorer individuals with good skills. Most of these enterprise programs are managed by public entities and nonprofit organizations. The goal of these entities and organizations is to feed the community with economical growth by providing employment in the communities. These organizations do not only provide financing solutions to small businesses but also offer technical support to local entrepreneurs in order to reach their goals in an easier way. In a lot of ways, microfinancing stands between the limited funds that the entrepreneur has and what the whole project would cost to get started. Micro funds are available for many different needs in business, whether it being a startup or even an existing business needing a piece of machinery or help towards expanding their business. The movement has helped many struggling individuals with microenterprises to survive and get through the recessions and the recent pandemic which saw many businesses close down or barely keeping their doors open. Providing this development program towards poorer communities also helps to grow the economical side of these communities by creating more jobs and financial freedom towards normal living costs. It provides microlending towards small businesses to ensure growth and success. These microloans can be used for any reasonable plan which will create a positive workflow towards a whole community. Nonprofit organizations contribute with microloans throughout the US. Peer to Peer microfinancing is the most commonly used method for funding business ideas and struggling businesses where the owners do not have a good credit score or collateral. Another aspect of peer-to-peer microfinancing is that the business owners sometimes need less capital than the minimum amount the bank is willing to provide. [...]

Nonprofit Program Advantages

Nonprofit ProgramsThere are many key elements in the advantages and disadvantages of running nonprofit organizations. In this article, we will focus on the advantages of nonprofit programs as well as what they provide towards communities and microenterprise development. Nonprofit organizations provide microloans towards small businesses wanting to expand or start-up an idea which they do not have the finances for. These organizations provide funds towards these businesses and ideas at no interest rate. This helps people in extreme poverty to be able to start up a business of their own. These businesses are small microenterprises that need to be developed into bigger businesses later on if the business owners succeed in making it work. The similarity between different types of nonprofit programs is that they all contribute towards the community and growing the economy. Some of these programs do not last long before closing in. The organizations that close can be seen as individuals not doing the necessary planning that goes into running a nonprofit organization. To ensure the success of your non-profit organization, you need to consider some of the key elements involved in making the organization a success. Articles To be a legit nonprofit organization you need to submit Articles of Incorporation. A nonprofit can not be operating unless they are properly registered as a nonprofit program by the state in which it operates. The Articles of Incorporation are to be submitted at the Secretary of State Offices and fees will need to be paid for the registration thereof. Tax-Exempt Not all nonprofit organizations are exempt from paying taxes. All organizations have to pay tax until they are exempted by the IRS. All charitable organizations may qualify for tax-exempt status. This is a very important part to take into consideration when thinking about opening a nonprofit organization. Mission Statement For a nonprofit organization to run successfully, it needs to possess a vision statement or mission statement. This statement sums up what your organization is about and what it stands for. The plans and means of your organization are important for it to be considered as a nonprofit organization. A mission statement provides information on who your company wants to help. A vision statement clarifies its plans as well as having supporters back your and your organization’s plans. Board of Directors Depending on where your nonprofit organization will be situated, some states require a nonprofit to have a board of directors in place. The board needs to consist out of at least 3 members. By having a board of directors in place, you can draw from each member’s experience and knowledge. A nonprofit organization can provide many attributes towards the development of microenterprises. They can provide award ceremonies for publicity of small businesses as well as microloans. [...]

How Does Microlending Work for Micro-Entrepreneurs?

Microenterprise Development / MicrolendingMicrolending is one of the most important factors to look at when considering application towards microenterprise development into your business. Microlending provides leverage towards business-minded individuals and existing micro-enterprises. For business-minded people with a good business idea but no funds, microlending can help them in order to achieve the start of their first business. Towards existing small businesses, it can provide funds to expand on the existing business. Risky Rewards There are both risks as well as rewards that go with microlending. Microlending started with how people want to invest their money into small businesses while helping the economy grow and help dreams come true. The lenders usually take a look at what the borrowers own. For example, if a borrower owns a home and a car, they might lower interest rates as the home can stand as collateral for the loan. Credit and background checks are always involved when considering lending money to a small business owner. The lenders always look at previous payment history towards microloans from the borrower. Even having a good credit score, borrowers can expect to pay a bit more interest than what is traditionally applied to loans. Lenders can actually earn more interest out of microlending than keeping their money in a savings or standard investment account. Sometimes lenders do not take collateral into consideration, which means if the borrower defaults, the lender may lose everything. When looking at websites that help lenders and borrowers to meet, you can see that most borrowers pay around 6% interest on microloans. When a borrower does not have a good credit score, they can pay up to 31.99% interest on a microloan. Because of some of the risks that go into providing microloans, lenders will sometimes invest small amounts per loan. Sometimes more than a dozen lenders will be funding a borrower to ensure that a possible loss won’t be harmful towards their finances. Portfolios are another way in which lenders can be sure not to lose. Portfolios exist out of many different borrowers with different credit qualities being funded by many lenders. This provides surety towards lenders that even if some of the borrowers do not succeed, they will still be making a hefty profit from the ones that do succeed and pay back their loans. Borrowers There are many ways in which microloans can be used to fulfill their different purposes. The first being where it was started. It was created to help people in third world countries create more jobs and become more economical. The lenders would pledge certain amounts of money to loan out to entrepreneurs in other countries with promising ideas and business goals. There are also companies such as Kiva that give microloans for humanitarian purposes. To apply for these loans, you need to provide a business plan which details day-to-day operations and goals you would like to achieve with the business. Many people from developed countries do not have good enough credit scores or do not need as much money as the banks can provide. [...]