Microenterprise

An enterprise qualifies as a microenterprise in the US if it is registered as having five or fewer employees and requires a seed capital of not more than $35,000. In Australia, the term is used to refer to businesses with a single owner and up to 20 employees. The European Union defines a microenterprise as a company that has fewer than 10 employees, a balance sheet total below 2,000,000€ and a turnover below 2,000,000€, and has met these requirements for at least 10 years. Microenterprises add value to a country’s economy by adding jobs and providing services. In developing countries, microenterprises comprise the vast majority of the small business sector as there are few formal sector jobs available, and are often supported by microfinance programmes that provide small loans to people attempting to set up such a business.