Over the past ten years, ETA has funded numerous initiatives in support of self-employment and microenterprise. Directly funded activities have included the Unemployment Insurance (UI) self-employment demonstrations, the Economic Dislocation and Worker Adjustment Assistance Act (EDWAA) Job Creation Demonstration, the Job Training Partnership Act (JTPA) Microenterprise Grants Program, and several competitively awarded welfare-to-work grants. Indirectly funded activities have included numerous state and local programs operated under the authority of the Self Employment Assistance (SEA) program and Job Training Partnership Act/Workforce Investment Act (JTPA/WIA). As indicated by this list, self-employment and microenterprise have received increasing visibility within the programs administered by ETA, and comprise a significant new initiative within the workforce development system.

Despite the growing attention to self-employment and microenterprise, many prospective participants do not have access to these services. Relatively few states have authorized SEA programs, and local Workforce Investment Boards (WIBs) have not typically included self-employment training programs on their lists of eligible providers. In general, the workforce development system has been slow to introduce these services.

To promote greater access to self-employment and microenterprise services within the workforce development system, DOL engaged BPA to provide (1) a review of ETA-funded activities in the areas of self-employment and microenterprise, and (2) a discussion of challenges and opportunities for state and local entities that wish to increase the accessibility of these services.

Publications:

Expanding Options: Comparative Analysis of DOL/ETA Experience with Microenterprise Training Initiatives, Final Report (Nov, 2001) (PDF:454KB)
While this report focuses on microenterprise training and services-efforts that promote the development of these small businesses-it also includes "self-employment" initiatives supported by DOL. Documents the findings from the literature review and key informant interviews and provides background on the field of microenterprise development. Summarizes examples of DOL-funded microenterprise and self-employment programs. Also describes challenges and barriers to incorporating microenterprise services into the workforce development system and suggests solutions. An appendix includes brief descriptions of promising research-studies that are likely to shed light on many of the questions raised in this report.