What is a Microbusiness?
A microbusiness is a small-scale economic unit that operates with limited resources and is typically managed by a single person or a small group. In Mexico, a business is considered a microbusiness if it has up to 10 employees and generates lower revenues than small and medium-sized enterprises (SMEs). These businesses often serve as the foundation for self-employment and represent a significant part of the formal and informal economy.
Key Characteristics of a Microbusiness
- Low initial investment – Requires minimal capital to start.
- Simple and flexible operations – Often managed from home or with minimal infrastructure.
- Few employees – Typically run by the owner, family members, or close collaborators.
- Local or niche market – Focused on a specific clientele or community.
- Basic administrative processes – Simplified legal and tax procedures.
- Gradual growth – Expands over time based on demand and resource availability.
Main Objectives of a Microbusiness
- Generating self-employment and income – Creating a stable source of revenue for the entrepreneur and their family.
- Meeting market needs – Providing products or services in demand within a specific community.
- Progressive growth and sustainability – Striving for financial stability and gradual expansion.
- Formalization and access to tax benefits – Legalizing operations to access credit opportunities and government support.
- Innovation and differentiation – Implementing creative strategies to stand out in the market.
