Why is a business plan essential for a micro-enterprise?

A business plan is essential for a micro-enterprise because it serves as a detailed guide for operations and funding. This document is crucial for outlining the business's goals, strategies, and specific actions needed to achieve success. It helps the entrepreneur clearly define the target market, operational procedures, financial projections, and funding needs.

By laying out a comprehensive strategy, the business plan allows the owner to navigate challenges and stay on track toward their objectives. It also provides potential investors and lenders with critical insights into the business's viability, increasing the chances of securing necessary funding.

The other choices suggest reasons that do not capture the complete importance of a business plan. While legal requirements vary by location and can sometimes involve the creation of a business plan, this is not universally applicable. Additionally, a business plan does not guarantee success; rather, it enhances the likelihood of achieving it through careful planning and execution. Lastly, while marketing might be a component of the business plan, it isn’t its primary purpose—operations and funding strategies are central to a well-rounded plan.