24CA94B3-B84B-43FA-B544-A42D8F7D933F Micro-Enterprise - Business Growing Pains 24CA94B3-B84B-43FA-B544-A42D8F7D933F


Dr Peter Ellis

The entrepreneurial undertakings required for a micro-entity relate to activities generated by the founder-owner manager. A micro-enterprise may be started for a number of reasons, where the owner does not necessarily want to grow.  The owner-manager may wish to have control of their own destiny, or it may be through necessity when large firms choose to outsource rather than employ.  It may also be through the passion to offer a product or service, or the potential to exploit an opportunity. The owner-manager will offer their service or support through their skill or ability such as providing a product, the service of a trade, or professional expertise.  Whether they work alone or have in-house or virtual assistants to help them, they are the primary source of the entity’s income.

The definition of a micro-enterprise is a venture with an owner who is the sole decision-maker, and whose venture offers service or support.

They may have assistance from employees; however, the owner-manager is the principal revenue generator. The Australian Bureau of Statistic consistently indicates that micro-enterprises were 87% of private sector organisations (PSOs). Therefore, of all new enterprises that commence as micro start-ups, only an average of 13% choose to grow. Most micro-enterprises consist of single income-generating enterprises that have started for several reasons. Whatever the reason, the capability skills of a micro enterprise owner, cover three areas. The first is technical activities, where the owner must know the technical skills of their enterprise. This could be selling or being a professional such as an accountant, dentist, plumber or computer engineer. The second is management activities, these may be new to the entrepreneur such as time, cash-flow, relationship building and system organisation management. Adding these tasks to those of actually carrying out the business activities may in some cases be overwhelming. Having to carry out all the management activities as well as ensuring there was sufficient stock and the maintenance of the required equipment to do the work was a significant reason for 87% of entrepreneurs remaining in a microenvironment. Finally, for an entrepreneur to succeed, they need to start developing personal abilities relating to employer rather than employee skills, such as trust in relationships with their employees, suppliers and customers.

Podcast Series Discussion on Business Growth and Transitional Growing Pains

The percentage of micro-enterprises considering growth or starting to transition from their micro enterprise structure want to increase their income. They know that they have to work harder, but do not wish to change their activities. For microenterprises to increase their income, they understand this requires working harder and longer hours to get more work.

Dr Peter Ellis

Your Silent Partner YSP.com.au

Related Articles


Classifying business size

Business Size: Definition, Importance, and Classification Introduction At BGP, we aim to provide you with comprehensive knowledge and insights into various aspects of economics and management. In this article, we delve into the concept of business size. Understanding...

read more
Follow Us


Subscribe For Podcast Notifications

Every 3 months, we will record a new podcast with a business leader, discussing the business growing pains that they overcame

Follow Us