User:Funmi.Ajani/sandbox

Global definitions & Examples[edit]
The term micro-enterprise refers to a small business that employs a small amount of people and requires less than a standard amount of an investment to create a business. Microenterprise usually specializes in providing goods or services for local communities. As a result of mirco-enterprise allows for poverty alleviation and increases employment, and improves income.

India[edit]
In 2006, the India n government has established the Micro, Small and Medium Enterprises Development (MSMED) Act that defines the type of enterprise based on the investment. In India, Manufacturing enterprises that specializes on the investment in Plant and Machinery. For this manufacturing sector to be considered a micro-enterprise rather than a small enterprise it must not exceed twenty-five lakh rupees ( 33,794.97 USD). An example of a micro-enterprise in the manufacturing sector is a local paper business owner that request for a loan to buy a machine and location to produce the paper. The owner of the business will employee a small number of people and the paper will be distributed in the community ranging from paper bags, paper, envelopes and various other paper products. In Service Enterprises they focus on investments in equipment. In a service sector a business is considered a micro-enterprise when it does not excessed ten lakh rupees (13,517.99 USD). An example of a service micro-enterprise is a small boutique that also provides tailoring services in a small community. The owner of the business may request for a small loan to start the business and afford equipment such as a sewing machine. They will employee a small amount of people to work in the business and the business is only in that community. The use of MSMED act promotes inclusivity and enhance the efficiency of the businesses.