Micro business vs. small business – learn what a micro business is and what challenges and opportunities it has.
Definitions vary, but typically a micro business is a type of small business that employs fewer than 10 people. Size and scale are the main differences between a micro business and small business—micro businesses often function as sole proprietorships and earn less than $250,000 annually.
If you’ve started a business, you probably identify as a small business owner, but are you actually a micro business owner? Solopreneurs, freelancers, side hustlers, and business owners in any industry employing fewer than nine people would qualify as the latter.
If that’s the case for you, it’s important that you understand what a micro business is, the difference between a micro business vs. small business, and the challenges and opportunities unique to this subset of small businesses. That way, you can better understand how to operate your business effectively, and how to navigate those inevitable challenges.