What is a microenterprise?
It is a business that employs five or fewer people, has an inadequate capacity to access traditional business services and a capitalization need of $25,000 – $35,000 or less. Many micro enterprises are sole proprietorships, creating employment for the owner and, often, family members. However, there are also micro enterprises that grow into larger businesses that employ other community members.
• Microenterprise – an enterprise with fewer than 10 employees and whose annual turnover and/or balance sheet total does not exceed €2 million • Small enterprise – an enterprise with fewer than 50 employees and whose annual turnover and/or balance sheet total does not exceed €10 million • Medium enterprise – an enterprise with fewer than 250 employees and whose annual turnover and/or balance sheet total does not exceed €50 million Microfinance often focuses on providing financial services for micro and small enterprises, although some organizations serve medium enterprises as well.
