Abdullah Gaffar
Unit: 19
Pitching for a Nnew
Bbusiness
–
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,19/A. P1: Describe the potential business opportunities for a
micro-business start-up.
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Within this evaluative report, I will be exploring potential ideas for a
micro-business start-up. This report will demonstrate to potential
investors that I have fully explored the potential ideas for an all-new
micro-business start-up, as well as the internal and external factors
associated with a micro-business start-up. Initially, I will be describing
potential business opportunities for a micro-business start-up and
reviewing the factors that need to be considered to start up a micro-
business.
What is a micro-business?
A microenterprise, also referred to as a microbusiness, is a tiny minute
business with limited staff. A microenterprise micro-business is typically
begun with a modest quantity of money provided by a bank or other
organisation and employs fewer than 10 people. The majority ofMost
micro-businesses focus on offering products or services to their
surrounding communities. Also, micro-business's balance sheets and
revenues are often below a certain threshold.
Statistics for micro businesses
In the UK, one in five (18%) of microbusinesses have annual sales of
less than £50,000.
However, more than 23,500 micro-businesses in the UK have annual
revenues of more than £1 million, demonstrating that success is not
always correlated with scale.
The typical annual revenue of micro-businesses in the UK is
presently £286,879.
Small and medium-sized businesses (SMEs) have an average annual
revenue of £703,419.
London is in the lead with more than 400,000 micro-businesses,
accounting for 18% of all businesses in the UK. This means that
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, London has the greatest density of micro-businesses in the UK at 47
per 1,000 persons.
The Southeast and East of England are next, with 38 and 36
microbusinesses per 1,000 people.
More than a third of all micro-businesses in the country are owned
by families, mostly in London and the Southeast. This is not
unexpected given that families in these regions frequently try to
increase their revenue by turning their interests into careers.
How does micro business work?
There is a very minimal difference regarding how a micro-business is
initially set up compared to a company. The business first decides on an
official legal framework, such as a PLC or LLC. After that, they choose
where and how to obtain funding. Micro loans, which are small loans
made available to people who have no credit history, assets, or
experience of work, provide financial assistance to micro-businesses.
Typically, these loans are enough to establish a small local business
venture. Then, a micro business owner can obtain the required business
permits and licences to launch a completely operational and legitimate
business.
Benefits of a micro businesses
By enhancing the local economy, microbusinesses contribute significantly
to society. By enabling them to take out a microloan, a small loan to help
these new business owners get started, this type of business makes it
simpler for first-time business owners to start their own business.
- Stimulates economic growth
Micro-businesses establish positive, mutual, and useful relationships with
the local populace, economy, or even organisations. These businesses
offer their community resources, and they may also use resources that
their community gives to them. For instance, if a business operates a food
van in a small town, it might purchase its goods from the neighbourhood
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, supermarket, thereby generating revenue for the retailer. The proprietor
of the grocery shop may then purchase a dinner from the food truck,
bringing money back into the small company.
- Increased autonomy
Having a micro-business enables people to control their initiatives
financially. Due to the lowered qualifying standards for microloans, small
business owners who might otherwise be denied a loan due to their
credit or job background now have the option to take a loan to establish a
company.
Microloans may reduce the financial burden that many business owners
bear, such as the need to raise capital to launch a business.
- Job creation
Depending on their purpose, micro-businesses operate locally and
complete a variety of commercial tasks or offer services. This means that
by hiring local residentsresidents for these initiatives, microbusinesses
can increase the number of employment available in the region,
especially locally.
- Connection with customers
The relationship a business has with its customers is among its most
crucial features, even for a micro-business. Since they hire fewer people,
micro-businesses may be better able to develop more intimate
relationships with their customers. Additionally, some micro-businesses
are run solely by one person, allowing clients to speak with the owner
about any issues they may have regarding the product or service provided
by the micro-business.
Examples of micro-businesses
Micro-businesses are successful in a variety of sectors. The following is a
summary of various kinds of micro-businesses:
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