KIEDF launched the Microenterprise Initiative in 2006 to help low income, and unemployed populations create an independent income generating activity. The Initiative develops and implements programs throughout Israel supporting populations facing barriers to business training and financing on reasonable terms.

The reality for people living in poverty is more bleak then the general population, with fewer opportunities and increased barriers for success. Prior to taking part in the program many participants were trapped in minimum wage position, living off welfare or unemployed with no clear opportunity available for them. The KIEDF Initiative supplies them with tools necessary to develop and successfully manage their business and the confidence and support to do so.

One of the three programs of the Initiative is the Business Development Program. The Program is based on lessons learned from economic empowerment programs around the world. The year long program includes an intensive business development training, pre-loan assistance, leveraged bank financing and post loan mentoring.

The training manual was developed from an International Labor Organization (ILO) training manual, "Get Ahead for Women in Enterprise".  A Hebrew and Arabic version are currently in use.

The training is adjusted to the needs of the different target populations (mainly women), including new immigrants, entrepreneurs from Orthodox communities, welfare recipients, and Israeli Arabs.

In each location, the program is done in cooperation with the local municipality, local NGO's and MATI (Israeli Small Business Association).