You may have heard this term “micro business” being batted about lately and wondered just exactly what it meant and what it was. You might be surprised to find that if you are operating your own small, home-based business, chances are that business could be classified as a micro business by today’s standards. Understanding what a micro business is may help you when you go in search of mentors, funding, marketing, etc. Here is a general overview of what constitutes a micro business.
As you know, the term “micro” means small. So, why would we need the term “micro business” if we already have the well-established definition of a small business here in the United States? Well, a small business can be pretty large (an advertising firm, a retail store, etc.) compared to a home-based or micro business. Often, micro businesses are owned and operated by one person, head quartered in the person’s home and the operations are rather small and contained. However, if you run your own house cleaning business where you are the sole owner./operator/worker, or operate a food cart in the city streets–these would both be considered micro businesses. As would a small, family-owned upholstery business or even a home day care.
Increasingly, funds, grants, and business loans are being made available for micro businesses. The amounts are generally smaller–some in the $500-$1000 range to help micro business owners with start-up costs, licensing, equipment, etc. You should check with your local banks and credit unions, or with the Small Business Administration for potential funds available for micro and home-based businesses. As more and more individuals try to create wealth and revenue with a micro business, the economic community is taking notice and trying to help these businesses survive. You may even be able to find workshops, conferences and classes geared toward helping and supporting micro business operations. Now you know that if you operate a home-based small business–this applies to you!
Micro businesses are definitely a growing sector of the economy and continued growth is predicted. With this growth in home-based micro businesses, gradual changes in ideas about the “American workplace” are occurring including a greater appreciation for consulting, independent contractors and telecommuting. Micro business growth helps small and rural communities grow and thrive and helps to diversify an economy that may not be as receptive to moderate and larger-sized small businesses.
See Also: Can You Still Save Money If You’re Starting a Business?, Do You Need Separate Bank Account?,