Chapter 5: Theoretical View on Microenterprise Entrepreneurial Motivators
Scott A. Hipsher INTRODUCTION The term “microenterprise” includes the words “micro” (very small), and “enterprise”, which refers to an organization created for a business purpose. Therefore the term would seem to be nearly interchangeable with the term “very small company”. The use of this term could lead to a focus on the smallness of a microenterprise while assuming that the enterprise portion of a microenterprise would have the same focus on being an organization and being a business as a larger organization. However, microenterprises are often composed of a single individual or members of a single family and therefore do not have features that are present in an organization. In addition, it is questioned whether owners of microenterprises primarily think they are running businesses, or whether they feel their work is more like a job. Microenterprises in developing economies are normally associated with self-employed individuals and very small firms operating in the informal sector of a nation’s economy. Individuals working in microenterprises in developing economies, whether self-employed, contributing family members, or as paid employees, rarely have the protections that workers in the formal economy receive, such as a mandatory minimum wage, health benefits, or any form of severance payment upon being released from employment (Charmes, 2009). While business education and the media almost exclusively concentrate on the formal sector of the global economy, the reality is that “most of the world’s workers are informally employed” (Jutting and de Laiglesia, 2009, 18). In the average country, approximately 55 percent of all...
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