What common challenges do micro-enterprises often face?

Micro-enterprises frequently encounter challenges stemming from limited funding and access to technology. This shortage can restrict their ability to scale operations, invest in marketing, or leverage tools that could enhance efficiency and customer engagement. Without sufficient funding, they may struggle to cover operational costs, hire help, or invest in necessary resources that can distinguish them in a competitive market. Additionally, lacking access to modern technology can hinder their ability to streamline processes or reach a wider audience, thus affecting overall business growth and sustainability.

The other responses reflect scenarios that are not typically characteristic of micro-enterprises. For instance, the notion of abundant funding and resources suggests that these businesses have ample access to capital and support, which contradicts the reality for many small-scale operations. Similarly, minimal market competition and excessive customer demand do not accurately encapsulate the typically competitive landscape micro-enterprises face. Often, they have to navigate a crowded market, making differentiation crucial to attract and retain customers.