ABSTRACT In 1996 the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), along with an expanding economy, dramatically decreased the numbers of people receiving public assistance in the 1990s. Emphasizing quick placement in unsubsidized employment, most states responded to PRWORA with a “work first” strategy. Although specific services vary by state, policies are guided, according to one analyst, by a philosophy that “the best way to succeed in the labor market is to join it, developing work habits and skills on the job rather than in a classroom” (Brown, 1997, p. 3). Typically, recipients are placed in the job market with little or no training and those unable to find a job right away may receive some short-term training or education, immediately followed up by another job search (Brown, 1997). This case study examines micro enterprise, a strategy that assists people who have received welfare to open small businesses through the First Step Fund of Kansas City, which helps former and current TANF recipients establish micro businesses. First Step Fund is a nonprofit agency that has been providing business training and support to low- and moderate-income individuals in Missouri and Kansas since 1993. First Step Fund's mission is to foster economic self-sufficiency through entrepreneurship training, access to capital, and ongoing support. It was founded with the idea that self-employment, or entrepreneurship, is a viable alternative to public assistance or low-paying jobs.