What is a micro-enterprise?

A micro-enterprise is defined primarily as a small business that employs fewer than five individuals and typically generates limited revenue. This classification reflects the entrepreneurial spirit at the grassroots level and emphasizes the role that small-scale enterprises play in local economies. Micro-enterprises often require minimal startup capital and can operate in a range of sectors, contributing to economic development and job creation.

In contrast, large corporations, franchise operations, and government initiatives do not fit this definition because they either involve substantial employee numbers, multiple ownership scenarios across locations, or are structured differently as initiatives lacking the characteristics of small, independently operated businesses. Understanding what constitutes a micro-enterprise is essential for recognizing their importance in entrepreneurship and economic growth.