What is a microenterprise?

A microenterprise is defined as a small business that is often owned and operated by a single individual or a very small number of people. This type of business usually has a limited number of employees and low startup costs, primarily focusing on providing local goods and services. Microenterprises play a crucial role in the economy by fostering entrepreneurship, creating jobs, and allowing individuals to generate income, often in underserved communities.

In contrast to other types of organizations, such as large corporations or franchises, microenterprises typically do not have extensive employee networks, substantial capital investments, or multiple locations. They are characterized by their small scale, personal ownership structure, and localized impact, making them vital contributors to economic diversity and resilience.