Small Business Help And Training




Micro Business Definition

This page defines a micro business and provides information how to form and use the micro business concept to your benefit.

A type of enterprise that is independently owned and operated, has few employees, does a small amount of business, and is not predominant in its area of operation.

Micro business is a very small business, smallest of all businesses. The majority of micro business companies are one-person enterprises. Moreover, these companies operate out of owner’s homes or a small executive suite office; and many of these companies have part-time help from a family member or friends.

Most home internet businesses are micro businesses.

European Union Definitions of Micro, small and medium-sized enterprises

Micro, small and medium-sized enterprises are defined according to their staff headcount and turnover or annual balance-sheet total.

A medium-sized enterprise is defined as an enterprise which employs fewer than 250 persons and whose annual turnover does not exceed EUR 50 million or whose annual balance-sheet total does not exceed EUR 43 million.

A small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million.

A microenterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.

Forming A Micro Business

Many people operate micro businesses without regard to rules, regulations or laws. They just engage in some economic activity and ignore government regulations.

But generally formation consists of checking with your local authority and registering the necessary paperwork to engage in an individual economic enterprise.

When using the internet to make money, following the micro-business strategy is highly recommended. Read it at Micro-Business Strategy.