Microenterprise

AAA

DEFINITION of 'Microenterprise'

A small business that employs a small number of employees. A microenterprise will usually operate with fewer than 10 people and is started with a small amount of capital. Most microenterprises specialize in providing goods or services for their local areas.

INVESTOPEDIA EXPLAINS 'Microenterprise'

Microenterprises serve a vital purpose in improving the quality of life for people in developing countries. Microfinance seeks to help microenterprises by loaning small amounts of capital to these businesses. This allows poor individuals or families to start their own businesses, earn income and benefit their communities.

For example, a woman in a developing country may use microcredit to take out a loan and purchase a sewing machine. She could use the machine to establish a microenterprise that specializes in tailoring. The woman would increase her wealth and help her community by providing a service.

RELATED TERMS
  1. Small Office/Home Office - SOHO

    A business that is operated out of a business owner's residence ...
  2. Small And Midsize Enterprises - ...

    A business that maintains revenues or a number of employees below ...
  3. Microfinance

    A type of banking service that is provided to unemployed or low-income ...
  4. Microeconomics

    The branch of economics that analyzes the market behavior of ...
  5. Microsavings

    A branch of microfinance, consisting of a small deposit account ...
  6. Microcredit

    An extremely small loan given to impoverished people to help ...
Related Articles
  1. Entrepreneurship

    Microfinance: What It Is And How To Get Involved

    This growing industry is full of opportunities for the socially conscious investor.
  2. Insurance

    An Introduction to Microfinance

    Is microfinance a way to help the poor, or will it just make them poorer?
  3. Entrepreneurship

    Social Finance Careers: Creating A Better World

    A financial career can be used to do more than just bring in profits. Find out how to get a career with a more social objective.
  4. Personal Finance

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  5. Entrepreneurship

    401(k) Plans For The Small Business Owner

    If you own a business, this may be the plan for you! Find out about its benefits and eligibility requirements.
  6. Investing

    Crowdfunding: Wide Opening For Tech Investors

    Crowdfunding has dramatically changed investing and opened the door for the public to get in on all types of exciting startups, including tech firms.
  7. Entrepreneurship

    Taboola: How "Content You May Like" Makes Money

    Taboola's tagline, “content you may like,” conveys a lot about its business philosophy.
  8. Entrepreneurship

    5 Small Business Ideas With Big Potential

    Here are five businesses almost anyone can start their own and grow as they gain experience.
  9. Entrepreneurship

    Emerging Startup Cities Of 2015

    While Silicon Valley and New York have been the birthplace of several well-known startups, other U.S. cities are making names for themselves as tech hubs.
  10. Entrepreneurship

    The Importance of Excel in Business

    Microsoft Excel is an indispensable tool for any business.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center