Micro Enterprises mainly consists of selling goods and services to the locals in the nearby markets. It only consists of 10 people and not more than that as it is restricted. Micro enterprises need some kind of funding which is known as microcredit or microfinance. For developing countries like India, it has become a trademark. From Micro enterprises, it is expected that it will try to fulfill the gap in terms of employment and productivity. Sometimes they are the saviors of the Indian Economy as they create jobs, which results in the lowering of the costs, purchasing power, and also in providing convenience.
The government is helping and motivating micro-enterprises especially the ones who are local or in low-income areas. Because of its sustainable growth, the government is showing more interest in the day by day.
OBJECTIVES OF MICRO ENTERPRISES
- Micro Enterprises can achieve its targets very fast and at a low cost as well.
- Micro Enterprises are the ones that are aimed to create large scale employment which is different from the formal sector and also helps in economic growth.
- Mainly used to increase employment which results in the growth of the economy and trade mainly in the backward areas.
- The main aim to target backward areas through micro-enterprises is for national development. That’s why their main target is the regional areas where they can easily get more people but with minimum wages.
- They are aimed to improve the mobilization of natural resources.
- The main reason for targeting them is to improve the living standards of all the citizens and those living in rural areas across the country.
HOW THEY WORK TO INCREASE THE ECONOMIC GROWTH
Micro Enterprises are working so hard to increase the employment rate and are seeking how to create more and more jobs. When they are working in the backward areas or rural areas their cost rate in terms of production, per person, and trading also decreases. Hence, the rate of unemployment decreases, and people are happy to work at minimum wages also. And the improvement and development in the small scale industries and micro-enterprises have resulted in the growth of the economy. This is the large source of generating more jobs even in those areas where people are less educated and are in need of some kind of employment.
Micro Enterprises are the main reason to full fill the gap between rural and urban economies.