Local Answers for Employment Crisis: The Role of Microenterprise Development
Dr. Alejandro Mungaray, Dr. Martin Ramirez-Urquidy, Dr. NatanaelRamirez-Angulo, Dr. Michelle Texis

Abstract
The global crisis of the past few years generated adverse labor markets characterized by high unemployment, challenging regions and their governments. As labor markets collapse, unemployment rise and wages plunge, individuals are pushed to entrepreneurship of microenterprise ventures. Under this context, microenterprises development can be an effective response to unemployment and the desperation derived from the lack of opportunities. This paper aims at providing answers to increase formal employment and improve welfare prospects under the context of a crisis. Thus, the program “Microenterprise Assistance and Training for Microenterprise Development and Employment” is introduced, which was implemented in Mexico as public policy by a local government in collaboration with the public university, as compensatory mechanism for the unemployment created by the recent economic crisis. During the most profound stage of the crisis, 2009-2013, the program trained, formalized in the tax authority and financed about 10,000 micro entrepreneurs, creating thousands of jobs.

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