ADS Chapter 219

Microenterprise Development

Functional Series 200 – Programming

Document Quality Check Date: 02/08/2013
Partial Revision Date: 07/08/2011
Responsible Office: E3
File Name: 219_020813


This chapter establishes policy directives and required procedures for USAID program efforts in the area of microenterprise development. In this context, the term “microenterprise” refers to a very small-scale, informally organized business activity undertaken by poor people. For USAID program purposes, the term is restricted to enterprises with 10 or fewer workers, including the owner (the “microentrepreneur”) and any unpaid family workers. Finally, “microenterprise development” refers to any activity undertaken by donors, host-country governments, or non-government organizations aimed at encouraging the formation of microenterprises or promoting the improved performance of existing microenterprises.