What is a common challenge faced by microenterprises?

Limited access to capital is indeed a common challenge faced by microenterprises. These small businesses often operate on tight budgets and may struggle to secure funding from traditional financial institutions due to their size, lack of collateral, or insufficient credit histories. This limited access can hinder their ability to grow, invest in necessary resources, or withstand economic fluctuations. As a result, many microenterprises must rely on personal savings or informal lending, which can impose additional financial strain on their operations.

In contrast, excessive marketing budgets, high employee turnover, and access to global supply chains are typically less relevant to microenterprises. Many microenterprises operate with minimal marketing expenses and often focus on local markets, which reduces their reliance on extensive advertising. Additionally, due to their size, microenterprises may face fewer challenges regarding employee turnover, especially if they maintain a close-knit team. Furthermore, while access to global supply chains can be an advantage for larger businesses, microenterprises generally focus on local sourcing and selling, making global supply chain access a less pertinent issue for them.