Association for Enterprise Opportunity
The Association for Enterprise Opportunity (AEO) is the national leadership organization and the voice of micro enterprise development. By providing cutting edge training, knowledge sharing, Federal and State public policy and advocacy, and communications, AEO empowers a community of nearly 500 member organizations to be uniquely effective in serving the needs of micro entrepreneurs who do not have access to traditional sources of business education or capital.
Mission & History of AEO
Mission: AEO supports the development of strong and effective U.S. micro enterprise initiatives to assist underserved entrepreneurs in starting, stabilizing, and expanding businesses.
Vision: Every entrepreneur in the U.S. has access to resources and services for creating wealth, assets and healthy communities.
History: AEO was founded in 1991 during a convening, in Berkeley, California, where over 150 practitioners from over 100 micro enterprise development organizations nationwide convened. Recognizing the opportunity and value of learning together, the convening participants decided AEO's mission would be to serve as the forum and voice for individuals and organizations committed to expanding enterprise opportunity for people and communities with limited access to economic resources, and to serve as the catalyst for responsible industry growth.
Also at that time, AEO defined micro enterprise development and coined the word "micro entrepreneur" to describe a particular kind of business owner. Today, micro enterprise is defined as a business with five or fewer employees, which requires $35,000 or less in start up capital. Micro enterprise development is the provision of support to micro enterprise owners (or micro entrepreneurs).
The roots of U.S. micro enterprise development sprung from economic programs that arose as a result of the women's movement in the late 1960s. By the 1980s it was evident that an important new economic strategy was developing. As micro enterprise development practitioner pioneers began innovative programs in scattered rural and urban areas nationwide, it became evident that an organized communication structure was needed to share knowledge, resources, challenges, and best practices among established and developing micro enterprise development programs.
From 1991 to 1999, AEO was headquartered in Chicago, Illinois. During the late 1990s the micro enterprise development field identified the need for stronger advocacy efforts in support of federally funded micro enterprise development programs. In 1999, to have closer access to policy makers on Capitol Hill, AEO moved to its current location in Arlington, Virginia- just across the Potomac River from the Washington, DC.
Today, AEO is an exciting and flourishing organization and the only national member-based association in the micro enterprise development industry. Its membership has grown to include not only practitioners, but also advocates, public agencies, funders, individuals, and others who share in AEO's mission.
Microenterprise
In the United States, a microenterprise is usually defined as a business with five or fewer employees, small enough to require initial capital of $35,000 or less; the average micro loan is about $7000
AEO estimates there are more than 24 million micro enterprises in the U.S., representing 18% of all private employment and 87% of all businesses. One out of six U.S. private sector employees works for a microenterprise. Historically, micro enterprises have been considered the backbone of the U.S. economy.
Most micro enterprises are sole proprietorships, which create employment for the owner and, often, other family members; they are commonly called "mom and pop" businesses. Some grow into large enterprises employing other members of the community. Micro enterprises include a variety of businesses in the products and service sectors such as repair and cleaning services, specialty foods, jewelry, arts and crafts, gifts, clothing and textiles, computer technology, child care, and environmental products.