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What's a microbusiness?
The term "microbusiness" is going to become more and more popular, so you should get familiar with it especially since, in all likelyhood, if you are a business owner, you're the owner of a microbusiness.
The term "microbusiness" is going to become more and more popular, so you should get familiar with it especially since, in all likelyhood, if you are a business owner, you're the owner of a microbusiness.
50% of America's business owners are home-based businesses and 85% of all registered businesses in the U.S. are "microbusiness" - meaning they have 5 or less employees and started with $35,000 or less initial capital investment.
The Self-Employment Learning Project defines a microbusiness as a business with less than 5 employees (some say it's fewer than 10 employees), little, if any access to commercial banking, and yet which may require a loan of up to $15,000 to get started. Generally, they require less than $35,000 in start up capital. Some are part-time businesses, and some are full-time businesses. I was told by MicroEnterprise Centers, that a microbusiness also earns less than $500,000 annually. Although, I haven't read that in any literature I could find. In fact, a microbusiness can make several millions a year although it's not the usual scenario.
Are You a MicroBusiness Owner? If so, You are in good company, and here's why:
The Self-Employment Learning Project defines a microbusiness as a business with less than 5 employees (some say it's fewer than 10 employees), little, if any access to commercial banking, and yet which may require a loan of up to $15,000 to get started. Generally, they require less than $35,000 in start up capital. Some are part-time businesses, and some are full-time businesses. I was told by MicroEnterprise Centers, that a microbusiness also earns less than $500,000 annually. Although, I haven't read that in any literature I could find. In fact, a microbusiness can make several millions a year although it's not the usual scenario.
How does this differ from a small business?
Small businesses are defined in any number of ways, but the most common definition, used by the Small Business Administration, is that a small business is one that makes less than $5 million a year and has less than 500 employees. Uhm, guys, that doesn't sound very "small" to me.
If you thought your business was a small business, and you feel like you may be losing that "small business prestige", take heart. Being a microbusiness owner has been a huge market trend for the last 20 years, but it is going to be one of the "hottest" market trends in the country by 2012. I predict that the term "microbusiness" will be one of the hottest buzz words in business and public policy in the near future. Given the state of the economy, it already is one of the fastest growing segments of business growth in the nation.
Small businesses are defined in any number of ways, but the most common definition, used by the Small Business Administration, is that a small business is one that makes less than $5 million a year and has less than 500 employees. Uhm, guys, that doesn't sound very "small" to me.
If you thought your business was a small business, and you feel like you may be losing that "small business prestige", take heart. Being a microbusiness owner has been a huge market trend for the last 20 years, but it is going to be one of the "hottest" market trends in the country by 2012. I predict that the term "microbusiness" will be one of the hottest buzz words in business and public policy in the near future. Given the state of the economy, it already is one of the fastest growing segments of business growth in the nation.
Are You a MicroBusiness Owner? If so, You are in good company, and here's why:
- Micro businesses are at the leading edge of business start-ups and are found everywhere in rural, urban, suburban areas, and as home-based, farm-based or brick and morter businesses..
- Nine out of every ten firms in the United States is a microbusiness. READ this again...yeah, nine out of ten. Are you feeling empowered yet?
- Microbusinesses are one of the fastest growing forms of business.
- Microbusinesses are more adaptable to economic downturns and changes, and can ride out the storms more successfully than small and medium businesses.
- Microbusinesses are largest sector of the American economy.
- Microbusiness Strategies estimates that 95.2% of all American businesses are microbusiness - over 25.6 million with only .07% of all American businesses are large business - 18,071.""
- AEO estimates there are “more than 24 million microenterprises in the U.S., representing 18% of all private employment and 87% of all businesses. One out of six U.S. private sector employees works for a microenterprise.
- Historically, microenterprises have been considered the backbone of the U.S. economy. This is truly the "Main Street" business
- Of a total 26.8 million U.S. firms, approximately 24.5 million, or 91.2%, are microbusinesses
- Approximately 95.2% of U.S. firms have fewer than ten employees .
- Non-employer businesses — defined as firms with no paid employees outside the business owner(s) — comprise the lion's share of the microbusiness population. There are approximately 20.8 million non-employer firms in the U.S.
- Non-employer businesses make up 77.5% of all U.S. firms.
- During the period from 1997 through 2006, the percentage of microbusinesses among U.S. firms increased from 87% to 91.2%, while the percentage of non-micro small businesses decreased from 13% to 8.7%. Firms with more than 500 employees has remained fairly constant at less than 0.1% of U.S. businesses.
- Each new non-employer firm represents one new self-created job. In 2005, new non-employer firms created an average of 72,361 new jobs per month. Job creation through non-employer firms are not included in monthly employment data released by the U.S. Department of Labor.
- Non-employer firms generated $970 billion in receipts in 2006. This represents 7.4% of gross domestic product for 2006. Average annual receipts for non-employer firms in 2006 was $46,724 per firm.
Sources: Nevada Microenterprise Initiative, Microbusiness Strategies, MicroEnterprise Journal, AEO, SBA, U.S. Census Bureau
