Where do many micro-enterprises commonly obtain funding?

Many micro-enterprises commonly obtain funding through personal savings and family loans because these sources are often the most accessible and immediate options for individuals starting a small business. Personal savings allow entrepreneurs to use their own funds without incurring debt, while family loans can provide a supportive financial boost with potentially more favorable terms than traditional lenders. These funding avenues are particularly crucial for micro-enterprises, which typically do not have the established credit history or collateral required for larger loans from banks or investors.

In contrast, relying solely on a personal credit card can lead to high-interest debt, which may not be sustainable for the long term. International investments might be beneficial for some enterprises but are not commonly a primary funding source for micro-enterprises, which usually operate on a much smaller and local scale. Lastly, while government grants can be valuable, they are not the exclusive means of obtaining funding, and many micro-enterprises do not qualify for them or may find the process too competitive or complex. Thus, personal savings and family loans remain the most prevalent and practical options for funding micro-enterprises.