Micro Enterprises Write For Us

The term micro-enterprise, also known as micro-enterprise, refers to a small business that employs a few employees. A micro-enterprise usually consists of fewer than 10 employees and is started with a small amount of capital provided by a bank or other organization. Most micro-enterprises specialize in providing goods or services to their local areas.

Microenterprises are small businesses financed through microcredit, a small loan available to people without collateral, credit history, savings, or work experience. Modest loans are often enough to get a small local business.

These companies serve an important purpose by improving the quality of life of people in developing countries and generally providing a product or service in their communities. Micro-enterprises help improve entrepreneurs’ quality of life and add value to the local economy. They can increase purchasing power, improve incomes, and create jobs.

Types of Micro-Enterprises

Although microenterprises are individually small in size and scope, collectively they can account for a significant portion of the economy and employment. The types of businesses that are considered microenterprises include:

• lawn and landscaping company
• street vendor
• carpenter
• plumber
• independent mechanics
• mechanical workshop operators
• shoemaker
• small farmers

Owners of bakeries and restaurants can be counted among the micro-enterprises, as can seamstresses, textile cleaners, and tailors.

Criticism of Small Businesses

People who support micro-enterprises and microcredit say these opportunities allow them to escape poverty and provide viable employment opportunities and a steady income.

But critics say otherwise. They claim that the concept of micro-enterprises can push people into debt. Loans carry interest (interest rates are often high because recipients may not have collateral or credit history), which means they may take longer to repay.

Some recipients may even use the advances for purposes other than starting their own business.

Example of a Micro Business

A woman in a developing country can take out a loan through microcredit and use the proceeds to buy a sewing machine. With the machine, she could start a micro-enterprise specializing in tailoring. The woman would increase her income and help her community by providing a service.

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