In the Fall Season, nature reminds us that little things can become great with time and nurture. Microbusiness owners feel that way about turning their talents and passions into thriving businesses. Many small businesses are microbusinesses; they are small enterprises made by people with big ambitions. They are an important source of economic growth in the US and across the globe.
Defining a Microbusiness
The US Small Business Administration defines microbusiness as a business organization with less than five employees that requires little capital to get started; they define little capital as about $40,000 or less. A more expansive version of the definition adds that the owners are often solo practitioners, consultants, artists, and self-employed people. The majority are one-person enterprises that operate from a home and use part-time help.
Growth and Potential
Microbusinesses are important for what they do and what they can become. They can provide a start of a business that can have a significant impact on individual lives and a small community. Microbusinesses have a potential to succeed and then grow into a larger form of small business that regularly employs people and serves a valued position in a local economy. Because they are small and lean, microbusiness can be a perfect start-up form. It is a method for converting personal skills and interests into a form of income.
Serving the Microbusiness Sector
In the Third World, microbusinesses sometimes play a critical role in local economic and community development. Service providers such as banks and financial services companies often bundle limited insurance coverage with other actions. In the US, Microbusinesses are often a preference for skilled individuals that wish to capitalize their talents. Many community organizations use microbusinesses to help chronically underemployed people, families in distress, and mothers with children that seek to become financially independent. They often combine technical assistance with other forms of financial backing like loans and grants. The appropriate insurance model depends on the nature of microbusinesses and the role it plays in the local economy.
Finding Microbusiness Insurance Solutions
Insurance can play an important role in sustaining microbusiness and helping it grow. Like any business, microbusiness operates in an environment with known and unknown risks. Insurance can protect against loss or damage to the business, and enable a microbusiness to continue after an event that might otherwise disable it. Microbusinesses need all of the protections that larger types of small businesses need including professional liability, property, life, data security, and vehicles. Depending on the nature of the business, there may be risks of liability to for errors or omissions. For financially challenged businesses, the issue is managing the costs of insurance and in that process how to tailor insurance coverages to the circumstances of a microbusiness.
Recognizing the need for Consultation
The best way for a microbusiness owner to begin is to ask questions and discuss the business with an expert. There is no one size of insurance coverage to fit the wide variety of micro businesses and their operations. The process is clear; microbusiness owners should assess present needs and future plans with insurance experts. They can begin the process of covering risks and adding greater financial security.