Micro-enterprise

A micro-enterprise (or microenterprise) is generally defined as a small business employing nine people or fewer, and having a balance sheet or turnover less than a certain amount (e.g. €2 million or PhP 3 million). The terms microenterprise and microbusiness have the same meaning, though traditionally when referring to a small business financed by microcredit the term microenterprise is often used. Similarly, when referring to a small, usually legal business that is not financed by microcredit, the term microbusiness (or micro-business) is often used. Internationally, most microenterprises are family businesses employing one or two persons. Most microenterprise owners are primarily interested in earning a living to support themselves and their families. They only grow the business when something in their lives changes and they need to generate a larger income. According to information found on the Census.gov website, microenterprises make up 95% of the 28 million US companies tracked by the census.Most microcredit clients are not microentrepreneurs by choice. They would gladly take a factory job at reasonable wages if it were available. We should not romanticize the idea of the 'poor as entrepreneurs.' The International Labour Organization (ILO) uses a more appropriate term for these people: 'own-account workers.' A micro-enterprise (or microenterprise) is generally defined as a small business employing nine people or fewer, and having a balance sheet or turnover less than a certain amount (e.g. €2 million or PhP 3 million). The terms microenterprise and microbusiness have the same meaning, though traditionally when referring to a small business financed by microcredit the term microenterprise is often used. Similarly, when referring to a small, usually legal business that is not financed by microcredit, the term microbusiness (or micro-business) is often used. Internationally, most microenterprises are family businesses employing one or two persons. Most microenterprise owners are primarily interested in earning a living to support themselves and their families. They only grow the business when something in their lives changes and they need to generate a larger income. According to information found on the Census.gov website, microenterprises make up 95% of the 28 million US companies tracked by the census. The concepts of microenterprise and microfinance were pioneered in 1976 by Nobel Prize recipient Muhammad Yunus, founder of the Grameen Bank (Bank of the Rural), in Bangladesh. The bank was established for the purpose of making small loans to the poor − predominantly women – to help them obtain economic self-sufficiency. The fundamental principle behind the Grameen Bank is that credit is a human right. This strategy was highly effective as the bank grew exponentially; from fewer than 15,000 borrowers in 1980, Grameen Bank had 2.34 million members by 1998, 7.67 million at the end of 2008, 97% of whom are women, and 9.4 million today. Wayne_Elsey pioneered the microenetrprise model with footwear and clothing since he founded Soles4Souls in 2006 and has become a major income source for thousands around the world with his continued focus with it. Forbes - Wayne Elsey The term microenterprise or microbusiness refers to different entities and sectors depending on the country. In Australia, the term refers to a business bigger than a single owner-operator, but having up to 5 employees. The European Union (EU) defines 'micro-enterprises' as those that meet two of the following three criteria and do not fail to do so for at least 10 years: The Office for National Statistics and the Department for Business, Energy and Industrial Strategy both maintain statistical recordswhich officially classify businesses of 1–9 employees as being micro-businesses. The House of Commons Library maintains a briefing note pulling together these statistical sources. In May 2013 David Young, Baron Young of Graham published a report for government on supporting micro-business growth in the UK, 'Growing your business: a report on growing micro businesses'. In the United States, a different model is used, but the stated goals and core values are similar. Here, a microenterprise is defined as a business with five or fewer employees. Many of these businesses have no employees other than the self-employed owners. Additionally, such microenterprises generally need less than $35,000 in loan capital and do not have access to the conventional commercial banking sector. The basis of microenterprise in the U.S. is entrepreneurship, recognizing a fundamental right of people to apply their individual talents, creativity and hard work to better their lives. Microenterprise programs, therefore, are built around the philosophy that the unique ideas and skills of entrepreneurs and would-be entrepreneurs should be provided business assistance and small amounts of credit to support the development or start-up of a small business, primarily through the U.S. Small Business Administration. Most organizations in the field also focus their services on those microentrepreneurs who, as defined by federal government standards, are low-to-moderate income. By definition, most of these entrepreneurs are minorities, recent immigrants, women, disabled or for other reasons have special challenges that reduce their ability to access traditional credit and other services.