What is a key benefit of obtaining insurance for a micro-enterprise?

Obtaining insurance for a micro-enterprise serves as a crucial form of protection against unforeseen events. This benefit is fundamental because unforeseen events, such as accidents, natural disasters, theft, or liability claims, can pose significant risks to the operations and financial stability of a business. Insurance mitigates these risks by providing financial compensation or support in the event that such unforeseen occurrences disrupt the business. This allows entrepreneurs to focus on growth and innovation rather than constantly worrying about potential setbacks.

While reducing competition, increasing customer demand, and enhancing product prices are important aspects of running a business, they do not directly correlate with the function of insurance in safeguarding the enterprise from unexpected challenges.