Starting Small: How Micro-Entrepreneurs Find Success?
Starting up often feels like chasing a dream, but for many, the way to that dream begins with micro-entrepreneurship.
Imagine a single mother turning her passion for crochet into a thriving online crochet fabric business or a recent history graduate starting to educate people on unknown facts about history.
These examples are not just from the imaginary world; they are real-life examples of how micro-entrepreneurship gives wings to anyone with a dream and the determination to turn their vision into reality.
What is Micro Entrepreneurship?
Micro-entrepreneurship refers to a small-scale business with a minimum number of employees, typically 10 people or fewer. Such startups are often launched with the bare minimum capital and initially restricting their scale to a limited range of products or services to a small customer base.
As per Ministry of MSME a micro enterprise in India is one:
“A micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees”. |
However, with the growing trend and constant change in working styles, along with the global lockdown caused by Covid-19, businesses have undergone significant transformations, leading to changes and opportunities never imagined and this is why micro-entrepreneurship is now successfully trending.
Over 99% of total MSMEs in India qualify as micro-enterprises, which make up 630.5 lakh enterprises. |
Characteristics of micro-entrepreneurship:
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Small Scale
Micro-entrepreneurship typically starts on a small scale. This small-scale operation allows for easier management and more personalized customer service.
For example, a home-based baker can cater to specific customer preferences and maintain high-quality standards due to the manageable size of the business.
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Low Overheads
Micro-entrepreneurship often has low overhead costs since it typically operates from home or in small, shared spaces.
This reduces the need for significant capital investment in office space, utilities, and large inventories.
For example, an online handmade jewelry store can run efficiently from a home office with minimal expense, excluding charges like rent and electricity.
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Use of Technology
Technology plays a significant role in micro-entrepreneurship, enabling small startups to reach wider audiences and operate efficiently.
Social media, e-commerce platforms, and digital marketing tools help micro-entrepreneurs promote their products and engage with customers.
An artisan selling handmade crafts online can use social media to showcase their work and attract buyers from around the world.
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Bootstrap Financing
Most micro-entrepreneurs start businesses with limited funds, relying on personal savings or small loans. This bootstrap financing approach encourages careful financial management and better problem solving.
Lijjat Papad, for example, began with a loan of Rs. 80 from Chhaganlal Karamsi Parekh, a Servants of India Society member and social worker.
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Customer Relationship
Micro- entrepreneurs often build strong, personal relationships with their customers. This close connection helps them understand customer needs and preferences, leading to higher satisfaction and loyalty.
A personal trainer, for instance, can tailor workout plans to individual clients, fostering long-term relationships based on trust and results.
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Risk Management
Micro-entrepreneurs often face unique risks that require strategic management. Unlike large businesses, micro-entrepreneurs usually have limited resources and a smaller customer base, which can make them more vulnerable to
market and economic uncertainties.Effective risk management involves maintaining a lean operation, diversifying income streams, and being adaptable.
There’s nothing wrong with staying small. You can do big things with a small team.
-Jason Fried, Founder and CEO at Basecamp. |
Benefits of micro-entrepreneurship
Did you know that micro-entrepreneurship offers numerous benefits? From low startup costs to improved work-life balance and beyond.
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Economic Development
Micro-entrepreneurship provides individuals with a path to financial independence. By starting their own businesses, people can generate income without relying on traditional employment.
A tailor, for example, in a small village might start by stitching clothes for neighbors and gradually expand their business to include custom tailoring and even clothing sales.
This self-sufficiency helps reduce poverty and can lead to a more equitable distribution of wealth within communities.
Micro and small startups contribute significantly to the economy, accounting for 33% of India’s GDP. -
Job Creation
Small businesses often have a ripple effect on the local economy. As micro-entrepreneurs grow, they may need to hire additional help.
Consider a food cart owner, who, after gaining success, decides to expand to multiple locations. This expansion creates jobs for cooks, servers, and even supplies, contributing to the overall economic health of the community.
MSMEs in India have created 120 million jobs across all industries. -
Flexibility and Autonomy
One of the most appealing aspects of micro-entrepreneurship is the flexibility it offers. Entrepreneurs can set their own schedules, choose their work environment, and make decisions that align with their personal and professional goals.
A freelance graphic designer, for instance, can choose projects that interest them, work from home, and balance their workload with family responsibilities.
This level of control can lead to higher job satisfaction and a better work-life balance.
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Innovation and Creativity
Micro-entrepreneurs often bring fresh ideas and innovative solutions to the market. Their ability to quickly adapt to changing circumstances and customer needs can lead to unique products and services.
For example, a local bakery might experiment with new recipes based on customer feedback, creating a niche market that larger businesses might overlook.
This spirit of innovation not only benefits the entrepreneur but also enriches the community with diverse offerings.
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Skill Development
Running a small business requires wearing many hats- you’ll have to be a salesperson, marketer, accountant, and more.
This multifaceted role helps micro-entrepreneurs develop a wide range of skills. A person running an online handmade jewelry store, for example, will learn not only about jewelry making but also about digital marketing, customer service, and financial management.
These skills are transferable and can open up further opportunities for career growth or business expansion.
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Community Strengthening
Micro-entrepreneurs often have strong ties to their communities. Their startups can become central hubs for local interaction and support.
For instance, a neighborhood coffee shop can host events, fundraisers, and meetings, fostering a sense of community.
This local engagement helps build stronger, more cohesive communities where the local residents support one another and work together toward common goals.
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Easy Accessibility
Starting a micro-entrepreneur typically requires less capital than larger business ventures, making it accessible to a wider range of people.
Micro-entrepreneurship can be especially empowering for marginalized groups, including women and minorities, who may face barriers in traditional employment.
A woman, for instance, in a rural area might start a home-based craft business, a cloud kitchen, selling her products online to a global market.
This easy accessibility can help bridge economic gaps and promote inclusive growth.
The Story of Lijjat Papad
A shining example of the power of micro-entrepreneurship is the story of Lijjat Papad, a brand that began with a modest idea and grew into a massive enterprise. In 1959, seven Gujarati women in Mumbai, India, decided to start a small business making papads to support their families using the only skill they had, i.e., cooking. The small venture quickly grew, creating thousands of jobs and empowering over 45,000 women across India. The women worked flexible hours and could balance household responsibilities while earning an income. Through continuous innovation and skill development, Lijjat Papad became a well-known brand, demonstrating how micro-entrepreneurship can drive economic empowerment and community strengthening. |
Examples of micro entrepreneurship
Let us understand what kind of business you can start to become a microentrepreneur in order to learn and grow in your personal and professional lives.
- Freelancing with Upwork and Fiverr
If you have expertise in skills in writing, coding, website development, graphic design, proofreading, or other areas, freelance platforms like Fiverr and Upwork offer an excellent starting point for your career.These platforms enable you to work independently and gradually build your client base through effective marketing strategies.
Over time, as you gain experience and refine your skills, you can attract high-quality clients and expand your freelance business.
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Online Courses
There’s always room not just for acquiring new skills but also for sharing the knowledge and expertise you’ve accumulated over the years.
If you believe you can assist others in advancing their skills, consider creating a comprehensive course that covers every aspect.
You can then market and sell it on popular teaching platforms like Udemy, Kajabi, or even through your own website.
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Home Services
You might be familiar with platforms like UrbanClap and YesMadam. UrbanClap provides a wide range of local home services by professionals, while YesMadam focuses on home salon services.
If you are skilled in personal grooming, cooking, gardening, or other local activities, launching a micro-startup in your community could be both profitable and rewarding.
Offering your expertise to neighbors can help satisfy local needs while also building a lucrative business.
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Ecommerce
Do you know Dorje Teas, a tea business based in the renowned Selim Hill tea garden in Darjeeling?
Dorje Teas, owned by Sparsh and Ishaan, faced challenges during the COVID-19 pandemic, but they wanted to protect their family’s heritage.
They decided to pivot to e-commerce, establishing an online presence and successfully selling their high-quality
Darjeeling tea at affordable prices throughout India. This not only saved their business but also created a widely accessible online platform.
That’s the purpose of ecommerce, building your presence online is easier and affordable than following the traditional approach.
As technology continues to advance and more people turn to online shopping and services, it’s now easier than ever before for you to offer your services online without spending a lot of money.
Doing so not only fits within your budget but also saves you time and energy.
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Brick and mortar startups
Brick-and-mortar startups are those traditional businesses that start offline.
The grocery shop in your neighborhood is an example of a brick-and-mortar startup, as is even the salon, which has no online presence yet.
Also, have you heard of mom-and-pop shops?
These shops are small retail shops that are run by members of the same family.
So if you want to start something like a grocery shop, flower shop, salon, or bakery, then starting your startup as a brick and mortar business could be the right choice for you.
Whenever you see a successful business, someone once made a courageous decision. -Peter. F Drucker management consultant, education, and author
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Hosting Events
We are the land of young entrepreneurs and consumers. People are open to delegating responsibilities to make their work easier and faster.
If you can start hosting events as a food distributor or provide a venue for conferences, then you can give it a shot to kick-start your startup journey. The event industry comes with many opportunities and benefits.
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Cloud Kitchen
Cloud kitchens are commercial kitchens focused solely on preparing food for delivery without the need for a dine-in space.
They are the best example of micro-entrepreneurship due to their low overhead costs, flexibility, scalability, and reliance on technology.
This model allows entrepreneurs to start with limited resources and money and gives them the leverage to experiment with menus and reach a broad customer base through delivery apps like Zomato, Swiggy and Eat Sure, making it an ideal place to start for aspiring chefs and food enthusiasts.
Bottom line:
The crux is that if you are an expert in certain things, you can use that in your favor and start as a microentrepreneur.
Microentrepreneurship offers various benefits, from personal growth, learning, and work-life balance to creating an impact and going big in the future if you work strategically.
Work with a mentor who can guide you in the right direction at the right time and with the right resources.
Also, you don’t have to seek perfectionism; keep working and make changes as per the requirements.
Always remember, you can review anytime. Edit. Pivot and keep modifying as time goes on.
If you want to learn how to build your dream startup from an expert in just 5 modules, then now is the right time to reserve your spot.
Hurry before it’s too late!
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