A micro company or microenterprise is a company Small in size Its definition varies according to each country , although, in general, it can be said that a microenterprise has a maximum of ten employees and a limited turnover. On the other hand, the owner of the microenterprise usually works in it.
The creation of a micro enterprise can be the first step of a entrepreneur when organizing a draft And take it forward. When formalizing its activity through a company, the entrepreneur has the possibility of accessing the credit , have retirement contributions and have a social work, for example.
It is important to highlight the fact that within the micro enterprise sector we find what is called microenterprise that is nothing more than the start-up of a business of that type where the entrepreneur himself is the owner and administrator of the same and in which, in addition to having made a low investment, it has no employees. The owner and even his relatives are those who stand up and develop that company.
In this sense, under this denomination, three different types of micro-entrepreneurship would be found: expansion, transformation and survival.
The micro enterprise can be framed within the small and medium enterprises (SMEs) . These are companies that do not have a significant impact on the market (does not sell in large volumes) and whose activities do not require large sums of capital (instead, labor predominates).
When determining the main advantages of a micro company, without a doubt, its flexibility should be highlighted. And it is that it allows not only that it does not have a rigid structure that prevents the undertaking of decisions and actions quickly but also that it adapts perfectly to the market and its trends.
However, it also has its drawbacks. Specifically, among the most notable are the fact that it is limited to a very small market since it does not have the resources, human or material, to carry out a large production. In the same way, it should also be stressed that the lack of funding is another of its disadvantages, which means that it cannot invest too much in technology or develop widely to reach much higher objectives.
Beyond the fact that the main characteristic of micro enterprises is their limited size, this type of companies has a great importance in the economic life of a country, especially for the most vulnerable sectors from an economic point of view.
This happens since microenterprise can be a work out for an unemployed or a housewife. Crafting, small-scale cuisine and professional consulting are some of the most common fields in the development of micro businesses. Over time, a successful micro company can become a larger SME.