Meaning of Microentrepreneurship
What is Microentrepreneurship:
As a micro-enterprise, it is called the economic activity undertaken by one or more entrepreneurs, who, in turn, are owners, partners and administrators.
They are characterized by being small, individual or family businesses, that do not have employees. The products or services they market are based on the skills, knowledge or skills that their members can contribute.
Both its resources, its capital and its sales levels are usually limited, so it does not require a large investment for its operation.
Their objective is to generate sufficient income to maintain the micro-business activity and provide sustenance for its members and their families.
Micro-businesses can offer a wide variety of products or services, such as handicrafts, costume jewelery, bakery, pastry, carpentry, etc.
Depending on the legislation of each country, micro-entrepreneurship can be located within the so-called informal economy. Hence, micro-entrepreneurship constitutes an option to underemployment or unemployment and, today, is considered a useful tool in the fight against poverty.
Types of micro-entrepreneurship
There are different types of micro-entrepreneurship: survival micro-entrepreneurship, which is one that does not have operating capital; expansion, which is what generates sufficient surpluses to sustain production, but not business growth; and transformation, which is the one whose surpluses allow the accumulation of capital.