A micro-entrepreneurship It is a small-scale business that provides a specific good or service. This type of business is carried out by one or a few people and is characterized by requiring a low initial investment and having a smaller production scale than that of a company.
In a micro-enterprise, human capital is the fundamental asset. People with a certain knowledge or skill produce a craft good or provide a service, for example: production of homemade jam, hairdressing service at home.
They are usually single-person or family businesses that have few or no employees in a wide variety of areas such as technology, health and beauty, mechanics, gastronomy, decoration, cleaning, design.
Characteristics of a microenterprise
- It involves time to invest in the project, since the owner of the business idea is generally the one who executes it.
- The entrepreneur or partners combine their skills and knowledge to set up the project.
- The management of the business is carried out by the entrepreneur (s). This implies a high degree of self-management and assuming responsibilities throughout the production process.
- It is necessary to have a planning with objectives and goals to be achieved.
- It has a low operating cost.
- It involves lower economic risks than a company, since the initial capital investment is lower.
- Income can be fluctuating. In some cases, they are only enough to maintain the production process, in others they also generate income for the entrepreneur.
- It usually works as a subsistence and self-employment activity.
- They are businesses that usually generate a close relationship with customers and consumers.
Difference between micro-entrepreneurship and entrepreneurship
A micro-enterprise differs from an enterprise by: the business idea, that is, the projection it has regarding the scope of the project; and the initial investment that is available to start, which in the case of ventures is usually higher.
A micro-enterprise can become an enterprise when it is decided to increase investment to increase production, which will lead to hiring a greater number of labor to delegate tasks.
Examples of microenterprises
- Production of wedding cakes
- Photography and video for social events
- Physical training at home
- Manicure and pedicure at home
- Manufacture of puddings and poinsettias
- Manufacture of scented candles
- Translation service
- Soap manufacturing
- Incense manufacturing
- Pool cleaning
- Maintenance of gardens and balconies
- Food truck
- Fumigation and pest control service
- Furniture rental for events
- Web-page design
- Freight service
- Messenger Service
- Event decoration
- Home painting service
- Online language course
- Family restaurant or cafe
- Manufacture of ceramic tableware and utensils
- Manufacture of wooden furniture
- Household appliance maintenance
- Glass cleaning
- Art atelier
- Binding of books and notebooks
- Animation of children’s parties
- Locksmith service at home
- Craft beer production
- Picture framing
- Mobile app design
- Manufacture of woven blankets
- Dog walking service
- Jewelry design and manufacture
- Food service
- Accounting service
- Party Dresses Design
- Sale of fruits and vegetables
- Laundry and dry cleaning at home
- School support
- Itinerant kindergarten
- Artisan bakery
- Design and development of board games
- Making uniforms
- Design and production of cushions
- Communication consulting
- Email marketing or mass mail service
- Sale and installation of alarms for the home and car