microempresas

Microempresas are small business entities characterized by a very small scale of operations, typically owner-managed, with a limited number of employees and modest revenues. They are often the first step in entrepreneurship and can operate in a wide range of sectors, including trade, services, crafts, and light manufacturing. Definitions vary by country, but microenterprises are generally distinguished from larger small and medium-sized enterprises (SMEs) by lower employment and turnover thresholds.

Size thresholds commonly used to classify microempresas include firms with up to 9 employees. In many jurisdictions, annual turnover or balance sheet totals are also capped. For example, the European Union defines microenterprises as those with 0-9 employees and an annual turnover or balance sheet total not exceeding €2 million. Other countries use different limits, reflecting local economic structures and policy priorities.

Role and characteristics: microempresas are often owner-operated, with informal or semi-formal status. They provide local services and employment, particularly in urban neighborhoods and rural areas, and contribute to poverty reduction and regional development. However, they frequently face barriers such as limited access to credit, formal registration hurdles, and constrained managerial capacity.

Policy and support: governments and development agencies pursue programs to strengthen microempresas through microfinance, simplified tax regimes, business development services, training, digital tools, and access to markets. Effective support typically combines financial access with capacity-building and regulatory simplification to enable sustainable growth while preserving their community-based character.

Measurement and impact: analysts track microempresas as part of broader SME ecosystems, focusing on employment, productivity, informal-to-formal transition, and resilience to economic shocks.