Small-scale entrepreneurship is referred to as microentrepreneurship. Microbusinesses may have the following characteristics:-
- A microbusiness is any company with one to nine employees, according to the Small Business Administration. Many small-business owners are solopreneurs, which means they operate their businesses by themselves.
- A microentrepreneur typically begins out with their own resources, a tiny investment from friends and family, or a small loan. More than half of microbusinesses are started with less than $5k, and roughly 16% of microbusinesses don’t need any startup money at all.
- Scale: Microbusinesses often cater to a small number of clients or provide a small number of products or services. For instance, you may run a neighborhood bodega or manufacture handkerchiefs on the weekends and market them online.
92% of all firms in the US are microbusinesses, and the typical microentrepreneur adds two or more jobs on top of their own.
Another rising trend is microentrepreneurship. Nearly a third of all currently operating microbusinesses were founded in 2020 or later.
Examples of Microentrepreneurship
You can launch a micro business in a plethora of various industries. Here are some typical categories.
The model of Fiverr
Even if you have a full-time job and technical or artistic talents, you can establish a small internet business with ease, according to Leland Dear, a mentor for small-business owners through the nonprofit SCORE. Freelancers may easily and quickly create a profile and connect with clients thanks to websites like Fiverr and Upwork. Popular offerings on Fiverr include:
Illustration, Voice-over work, Video editing, Graphic design, Proofreading, and Customer assistance are all services offered.
Upwork is well-known for offering services like:
Web development, Architectural design and Accounting Legal research.
If you have a marketing plan that will help you find clients, you can freelance independently online as well.
You can establish a very small-scale business in your neighborhood providing cleaning, interior design, landscaping, and other garden services.
Consider the Netflix original series The Home Edit, which was created by two friends organizing their friends’ cabinets and closets. It was later bought, and Walmart now carries a range of its products.
A lot of the services in this area can be provided on a business-to-business basis, such as office cleaning services. Babysitting, pet sitting, tutoring, and music lessons are additional services that can be provided in the homes of your clients.
Personal training, dating, and life coaching are a few examples of coaching services that make great microbusinesses for solopreneurs. To succeed, you’ll need to possess the appropriate abilities and characteristics, but you can start off with very little money. Additionally, this type of business is simple to integrate into your schedule.
You can develop an online course using a platform like Udemy or Thinkific if you have expertise that others could find useful. If you do it well, your recorded courses could be seen by students all over the world, allowing you to make money while you sleep.
Courses can be taken on everything, from treating your dog’s diabetes to how to advertise a podcast or teach your dog.
If you have expertise in a certain business field, such as developing a sales force or expanding into new regions, you can leverage those abilities into a consulting business.
Celia Polkinghorne, a former freelance writer, founded Bonsai Digital Marketing as a result of growing weary of working 10-hour days without making the money she desired. Because she was short on cash, she used her credit card to pay for a professional marketing coach, a few small pieces of software, and LinkedIn’s Sales Navigator service.
The best course of action, suggests Polkinghorne, is to find a mentor or coach. “If not, you’ll have to find it out on your own, which will take years and years,” she said. She brought in $4k in her first month. For her now, a $10,000 month is “quite an easy sleepy month.”
Another inexpensive approach to start a business is through e-commerce, especially since you can use low-cost digital marketing (like social media) to attract customers to your store. You don’t even have to keep any inventory if you employ dropshipping to fill orders.
White Rain Designs was first a side project for Manmeet Kaur Berryman. Because she didn’t have a “business brain,” she attended classes and poured endless hours of research into becoming more knowledgeable. She adored making handcrafted ceramic presents and jewelry from her home studio.
She opened an Etsy shop in 2015 and started selling a modest selection of presents that were personalized. During the pandemic lockdowns, demand increased dramatically and a devoted clientele grew.
With a part-time studio manager, Berryman and her husband now devote their full time to the company. They now accept wholesalers in addition to their direct-to-customer business model.
There are many prosperous neighborhood mom-and-pop stores, but opening an offline retail business requires more money and risk than doing business online. Consider the following:
Dry cleaners or a laundromat
Salon for nails or hair
Store of hardware
Bookshop used books
The event business offers a variety of career options, including catering trucks, unique cake toppers, and coordinating conferences.
A former salesperson of running shoes, Daniel Riou founded Groupe Defis, a company that organizes sporting events including road and trail races, to become his own boss. They operate in Quebec, Canada, and hold roughly 10 events a year.
Although he claims he could have made do with $500, he began with a $2k loan from his father. The company didn’t start making money for another year, and for the first two years he had to work other jobs. He now works full-time for the company and has three other employees. Riou says, “We tried scaling, but it was too hazardous and time-consuming to launch events across Canada, so we opted to stay small and foster a work atmosphere that we appreciate.
Advantages of Microentrepreneurship
A little beginning might serve as a springboard for something bigger. With the help of microentrepreneurship, you can start a firm even with very little funding. You can decide to expand in the future, but 31% of solopreneurs indicate they intend to remain small. Why? Read on.
More favorable work-life balance
Being small provides the founder more control over their schedule and enables them to give other life objectives, like family or hobbies, higher priority. There are many ways Stapleton could grow her company, but “I find the busier I get, the less happy I am, so it’s a purposeful decision I have made to keep it small,” she says.
Similarly, Polkinghorne claims that running a small business allows her to live the lifestyle she wants. “I can go to the beach if a client session is over and I don’t have another session for a few hours.”
Economies of scale, or cost advantages from spreading overhead costs over more products, allow businesses to become more lucrative as they expand. Higher operating expenditures, however, can have a detrimental effect on cash flow as a business grows.
For instance, you might need to rent a studio space and hire a customer service manager if you wish to expand your homemade crafts business. It makes more sense to stay small if the extra money made from selling more crafts won’t be enough to cover these new costs.
Failure is never fun, but the risks are lower if you start small. Your microbusiness may be something you can test out as a side hustle at first, giving you a backup plan.
More personnel and funding are typically required for larger businesses. You could need to get a loan or find investors that want to make money. Your employees can lose their jobs if the business takes a turn for the worse. That much pressure is a lot.
When you operate a small business, you have complete control over every area of the enterprise and may organize and manage everything to your preferences. There is less bureaucracy and you deal with fewer employees. It’s simpler all around.
Stapleton says of her company, “I feel like I can stay on top of everything, and it feels manageable.”
Groups and cultures
In a small group setting, founders find it simpler to create and uphold the culture they desire. “If you stay small, you can spend more one-on-one time with your team and clients, so there may be more employee growth and better customer interactions,” explains Dear.
All types of people can become microbusiness owners. The abilities and qualities needed vary depending on the firm, but there are some universal elements that can help a microbusiness succeed.
- Consistency: According to Dear, “One of the hardest things to do in business is to be constant day in and day out.” “To be the best is simple. Being the best is incredibly difficult.
- Persistence is necessary because you will feel like giving up a lot. Polkinghorne advises, “The first thing you’ve got to do is not give up.”
- Self-awareness: To succeed as an entrepreneur, you must be willing to accept criticism, admit your flaws, and invest heavily in personal development.
- Self-motivation is important because “your business is mostly dependent on you,” according to Stapleton.
- Independence: You must feel at ease making important decisions and resolving issues on your own. You might also need to be content with spending a lot of time alone, depending on the industry.
- Leadership: Selling your product, hiring and retaining a staff, and forming strategic alliances will all benefit from your ability to inspire others to share your vision.
- Patience is a virtue because it may take some time to develop a successful business plan. You must possess the ability to persevere.
Suggestions for Microbusiness owners
Here are some great suggestions from those who have done it all if you’re ready to start.
–Discover a mentor, advises Dear. “Preferably a free one. It may be through SCORE or a successful individual in your field.
-It doesn’t have to be perfect at first, according to Stapleton. As time goes on, you can evaluate, revise, adjust, pivot, and rebrand. Aim for advancement rather than perfection.
-Learn about the assistance options. Along with charities like SCORE, other resources include business chambers, online networking platforms, and governmental organizations like the Small -Business Association. Only 3 out of 10 microbusinesses are aware of the funding and assistance programs offered by the local government.