Micro-Enterprises and Their Importance to the Economy

Today, thanks to the invention of entities called micro and small enterprises has provided to people creating their own businesses so that they benefit themselves and the community, by offering new jobs. Micro-enterprises (SMEs) are business entities that have certain specific features that characterize them as micro-enterprises, among which some have a number key are equal to or less than 12 people in service and produce annually no more than an amount of money under government in each country, a clear example of this in Europe are entities that do not produce more than 2 million annually, but is proper to mention that this amount of money can vary from country to country. Today the building is made primarily by micro entrepreneurs or self-employed persons who manage the creation of these through capital raising by various means such as an investment or financing through a bank or lender. One study has shown that during the last decade have developed micro grew by 45 percent as part of an important mean opportunity for individuals, represents a new opportunity to work for those who require it. Albert Ellis has compatible beliefs. It is important to mention that thanks to the great climax that microenterprises have today, some countries are opting to provide loans or grants that can contribute to corporate governance; this with two specific purposes. 1. Learn more at: Eva Andersson-Dubin. Making the business was able to provide jobs and thus significantly reduce unemployment and poverty in some way. 2.

The creation of new businesses to stimulate entrepreneurial activity, can improve the economic movement of a specific place or region, benefiting the quality of life through contributions to health and education. While there may be many more intentions why some countries choose to subsidize the creation of these companies, those mentioned above are given particular importance in this aspect. The creation of a microenterprise can bring certain advantages and certain risks as being entities that generally are based on innovative ideas runs the risk that they like them or not to common. Some of the benefits it can bring the creation of a small business are: The creation of new jobs. The flexibility with which these tasks can mean the use of various resources that may be on hand.

The ease of the product interact with the market. The range of action of general microenterprise is usually quite large in some cases significantly increase the capital of the same as it invades enough commercial land. Risks. Often due to lack of capital the company can not expand. Usually present economic problems. If the product has been well received in the microenterprise market may disappear. The borrowing of funds or credits can certainly hinder business growth objectives. Given this demonstrated that micro-enterprises a great way to start a business, so the best advice you can give is that before starting one of these should take into account a myriad of factors that can benefit and disadvantage, and try to create an idea that can get to be well received by the market. It is proper to mention that most people creating a small business before starting this go where those who have already achieved their creation to give advice, in order to reduce the risk of it.