Why micro-businesses may be the way to go

5/8/2011

Most entrepreneurs dream of starting a small business - a company with 100 employees or less. However, in a time where money is still tight, launching a micro-business - a company with fewer than five people - may be a better option, suggests the American Express OPEN Forum.

Startup costs for these companies are generally lower, which makes getting commercial loans even easier than funding a bigger company. According to the source, micro-businesses often cost less than $35,000 to launch and have low overheads as well.

"For those that haven't yet started their micro-enterprise, now is the time. And shooting for a micro-enterprise is a smart move. They are an important part of the economy in this country, as well as around the world. So dig around for that pocket change, tap into your talent, and start running your own micro-enterprise," American Express OPEN Forum recommends.

According to the new Wells Fargo/Gallup Small Business Index, obtaining capital is still a key challenge for one-third of business owners. Going the micro-business route may alleviate some of those concerns.