Exploring Consulting Value Creation for Microenterprises

Microenterprises comprise over 80% of all businesses in the U.S., yet they face significant challenges, including limited strategic knowledge and constrained resources. Using the U.S. Small Business Administration’s definition of microenterprise as a business with fewer than nine employees, this research examines consulting engagements with four diverse for-profit and not-for-profit organizations. It explores key challenges, the nature of value co-creation, effective consulting practices, and differences from large-firm engagements. Drawing on the experiences of consultants, this paper identifies four essential components for effective consulting: preparation and motivation for engagement, a focus on story listening, a structured strategic framework (e.g., Analysis, Formulation, Implementation - AFI), and a commitment to accountability. It also introduces a Preliminary 4-Phase Microenterprise Consulting Framework—Pre-Engage & Engage, Co-Discover, Co-Create, and Sustain—designed to support participatory, tailored, and capacity-building consulting efforts. Findings emphasize the importance of customization, co-ownership, and implementation support. While many tools parallel those used in larger firms, their application must be adapted to the unique realities of microenterprises. The study offers practical insights to enhance consulting outcomes and long-term growth in this underserved segment.