What is a Micro Enterprise?
In the UK a micro enterprise (or microenterprise) is a type of small business, often registered, having 5 or fewer employees and requiring seed capital of not more than £20,000. In Australia, on the other hand, the term can refer to a business with a single owner-operator and up to 20 employees.
,p>Generally speaking:
- in developed countries, micro enterprises comprise the smallest end (by size) of the small business sector, whereas
- in developing countries, micro enterprises comprise the vast majority of the small business sector – a result of the relative lack of formal sector jobs available for the poor. Entrepreneurs often operate micro enterprises not by choice but out of necessity.
Many micro enterprises have no employees other than the owners, and generally do not need large investments or loans or working capital. They are often run by entrepreneurs on a low to moderate income.
Many of these entrepreneurs are drawn from disadvantaged minorities, recent immigrants, women, disabled, those with mental health issues or those who for other reasons are less able to access traditional credit facilities and other services. This is where Third Thursday can provide a nurturing environment, useful contacts, training and real life experience, to help a micro enterprise reach its full potential.
Micro Enterprise Case Studies
Third Thursday and Micro Enterprises
Third Thursday is recognised as a catalyst in developing micro enterprises within Hertfordshire, Bedfordshire and Cambridge. Half of Third Thursday members are micro enterprises.
Third Thursday director Eileen Hutchinson has first hand experience in developing her own micro enterprise, Harmony Coaching and Mentoring Avenues (HCMA www.hcma.me.uk). HCMA’s philosophy is based on a Margaret Mead quote: “Never doubt that a small group of thoughtful, committed people can change the world, indeed it is the only thing that ever has.”
“Microenterprises add value to a country’s economy by creating jobs, enhancing income, strengthening purchasing power, lowering costs and adding business convenience.”
