6 Significant Benefits of Micro-Businesses

Most of the business organizations that exist in the world are actually very small businesses and micro-businesses. Mainly, sole traders with either one or no additional workers.

Nowadays, it is common to make a further distinction for very small businesses known as micro-businesses. Micro-businesses employee very few people and generate low sales revenue compared to other firms in the industry.

Small firms are very important to all economies and to the market in which they operate. Encouraging the establishment and development of micro-business units has many benefits.

Detailed benefits of micro-enterprises

• Job creation. Micro-businesses are a very critical job generator for the economy. In general, the majority of companies in any entrepreneurship economic ecosystem are micro-businesses. Although each one does not employ many staff in total, collectively the small-business sector employs a very large proportion of the working population in most countries. Jobs created by micro-businesses are a particularly important source of new employment, and a frequent source of entrepreneurship.

Example 1: As many as 3.7 million microbusinesses in the U.S. made up approximately 75.3% of all private-sector employers in the country in 2013.

• Added dynamism to the local economy. Micro-businesses are run by creative and passionate entrepreneurs who have tons of ideas for new products — innovative…