Asset Growth and Enterprise Development
Growing assets is a primary means of building economic security and boosting people out of poverty for longer periods of time, sometimes permanently. It is clear that there are three primary ways that assets grow. Home ownership is a less useful strategy for people with very low monthly incomes. Two other asset development strategies are Human Capital Investment and Enterprise Development.

Enterprise development policies and practices have increased the economic opportunities available to people with low incomes. For those already interested in pursuing self-employment, certain policies may serve as impediments to these opportunities. These individuals also may have trouble accessing the mainstream financial system and capital. Ultimately, government must create the regulatory environment that will enable or require these populations to be served by financial institutions, This will not only make certain that more people are banked, but eventually will guarantee that more people will gain access to capital. A further element of this equation is financial education regarding means of saving and managing funds and ways of lowering transaction costs.

Key Step Strategies
Coordinated attention to the net worth of households or asset based policy could improve family and community wealth. Many asset growth strategies provide other positive outcomes, such as improved outreach for receipt of the federal Earned Income Tax Credit and implementation or improvements in state Earned Income Credits. These strategies increase income which can be directed to asset growth and which also increases work levels among low income households. Other STEP strategies for asset growth and enterprise development include:

• The growth of the asset development movement in many of the Northwest states, especially state-supported Individual Development Accounts.
• The improved integration of IDA’s with other state human capital and enterprise development strategies.
• The role of state and local tax policy in impeding enterprise development in low income populations.
• Preventing the loss of assets by reducing predatory lending, expanding asset allowances in public support programs and coordination of public supports programs that insure family well being increases as earnings increase.