Small business undertaking commercial projects
They are classified as micro because they are not only composed of few employees but also because they do not require a large investment to function and they occupy a small place in the market. However, this does not imply at all that they are not profitable, but on the contrary, micro-enterprises are capable of growing to a very important level and of achieving great competitiveness with their peers in the sector. Although there may be variants from country to country, a microenterprise generally has a maximum of ten employees and a limited turnover, while another of the characteristic and differential features with respect to larger companies is that in microenterprises, almost always, the owner of it works on it. In other words, a microenterprise has a fairly limited impact on the market in which it operates, it does not sell large volumes, nor does it need a large amount of capital to function, but on the other hand, it will be dominated by labor
A small company is known as a microenterprise, which is almost always the result of the effort of a project of entrepreneurs, who will even be in charge of administering and managing it. Few employees, limited turnover but a great influence on the economy of a country
But this limited size and low incidence in volume of money does not mean that microenterprises are not important in the economic life of any country, since on the contrary, they play a decisive role in the development of the economy of a nation.
A niche for the most vulnerable sectors: unemployed, housewives
Furthermore, microenterprises turn out to be of great help for those most vulnerable sectors of a country, since they almost always offer job opportunities for some sectors of society that are little appreciated or discriminated against, such is the case of housewives or the unemployed. Many unemployed people see microenterprises as the way to achieve a profitable occupation and on the side of housewives, it can be a job opportunity that they can even develop from home without having to totally neglect their activities as heads of household. Due to this situation that we mentioned, that microenterprises employ a population sector that may have been left out of the labor market and also because of the efforts that it implies for those who carry it out, it is important that they receive support from the government, through subsidies. , at least until they get off the ground or win the market. The assistance they may receive from financial institutions through loans is also relevant. Many times, the microenterprise, turns out to be the first step of an entrepreneur when organizing a project and carrying it out. Once the entrepreneur formalizes the project and the company is already a concrete fact, he has the possibility of accessing credits that will allow him to buy machinery, pay for some extra expenses in order to generate more work and production for his company, in addition to being able to have social work and have retirement contributions. Micro-enterprises are popularly known as SMEs, whose abbreviation means Small and Medium Enterprises. However, there are disadvantages or complications and the most important one that is identified in these cases is the lack of financing that they find and that causes that, for example, they cannot be determined to achieve important goals in a short time. This obviously undermines its take-off and expansion at the international level and in some way condemns the microenterprise to act at the local level. A performance that is good, nobody can deny but a limited action indeed. And to end with the positive, without a doubt, we must say that the great advantage is constituted by the flexibility they present, since unlike other large companies they do not have a rigid structure and this allows them to change course or make quick decisions to adapt to market needs. The first step of the entrepreneur
Disadvantages: lack of financing
Advantages: great flexibility
