Module 1: Introduction to Micro Business
Lesson 3: Benefits and Challenges of Running a Micro Business
Running a micro business is a good way to earn money with low cost. You can start small, work from home, and be your own boss. But running a business also has problems. In this lesson, you will learn the good and the difficult parts of micro businesses. This will help you make better plans and avoid common mistakes.
Key Concepts
• Benefits of Micro Businesses
• Daily and Long-Term Challenges
• How to Handle Common Problems
» Benefits of Micro Businesses
A micro business is a very small business. It usually needs less money to start and fewer people to run it. Many people choose this type of business because it gives freedom and control. The primary benefits are;
» Low Start-Up Cost
You don’t need a lot of money. You can start with what you already have. For example, a woman can start a tiffin service using her kitchen.
» Flexible Work Time
You can decide when and how much to work. This helps students, housewives, and retired people.
» Better Customer Service
You can talk directly with your customers. This makes them happy and they may come back again.
» Full Control
You are the owner. You decide what to sell, how to sell, and how much to charge.
» Less Monthly Expenses
You don’t need a big shop or many workers. This keeps your costs low.
» Use of Creativity
You can use your ideas in making or selling things. Like designing handmade bags or making natural soaps.
» Who Can Benefit
| Type of Learner | How It Helps |
|---|---|
| Youth / Students | Easy to start, part-time work, learn while earning |
| Women | Can work from home and manage both home and work |
| Retired Persons | Keep active, earn some income with low pressure |
| Low-Income Families | Start with small money, earn slowly |
| Skilled Workers | Use skills like tailoring or painting to earn money |
2. Daily and Long-Term Challenges
Micro businesses also have problems. Some are daily issues, and some are bigger problems that take time to solve.
» Daily Challenges
• Too Many Tasks
One person has to do everything. This includes selling, buying, and talking to customers.
• Money Problems
Sometimes, sales are low and there is not enough money for daily needs.
• No Extra Help
You may not have staff to help you. You have to do all the work alone.
» Long-Term Challenges
• Big Competitors
You may face big shops or businesses that offer more discounts or have better ads.
• Growing the Business
You may want to grow your business but don’t know how to do it or don’t have enough money.
• Keeping the Business Running
It’s hard to keep the business going for many months or years, especially if customers stop coming.
» Quick View: Challenges
| Type | Problem | Example |
|---|---|---|
| Daily Challenges | Time, money, no staff | Tailor can’t manage orders alone |
| Long-Term Issues | Competition, growth, survival | Home bakery competes with big cake shops |
3. How to Handle Common Problems
Every business has problems. The good news is, there are simple ways to solve many of them. Some Common Problems and their Simple Solutions
» Too Much Work
• Use tools like a notebook or Google Calendar to plan tasks
• Ask family or friends to help for a few hours
» Irregular Money
• Save some money during good months
• Sell more than one product to get more customers
» Customer Complaints
• Always tell customers clearly when they will get the product
• Listen to their feedback and make small changes
» Big Competitors
• Focus on giving good personal service
• Sell something special or different from others
» Growing the Business
• Take small steps to grow
• Use WhatsApp or posters to reach more people
• Work with local shops or delivery people
» Summary: Problems and Solutions
| Problem | Solution | Example |
|---|---|---|
| Too Much Work | Ask help, use tools | Use mobile reminders to track orders and stock |
| Low or No Income | Save in good months, sell more | Tiffin service adds snacks to earn more |
| Customer Complaints | Be clear, listen, and improve | Soap maker writes delivery date on every order |
| Big Competitors | Focus on quality and service | Boutique gives free home trial to loyal customers |
| Growing is Difficult | Use local marketing, grow slowly | Candle maker starts selling at weekly markets |
» Application
Think about what type of micro business you want to start. Write down the benefits you will enjoy. Then, list down the problems you might face. After that, write one solution for each problem. This small step will help you prepare well before starting your business.
» Short Assignment
Choose one micro business idea (like tailoring, bakery, or online gift shop). Write 3 benefits of that business. Write 3 problems it might face. Write one idea for solving each problem
» Example
Business: Small Tailoring Shop
Benefits:
• Can work from home
• Low cost to start
• Use existing sewing machine
Problems:
• Not enough customers
• No time to market
• Delay in delivery
Solutions:
• Ask friends to refer customers
• Use WhatsApp status to show designs
• Keep a simple order diary
» Common Mistakes
• Not planning for slow sales months
• Doing everything alone without help
• Trying to grow too fast without money
• Not listening to customer feedback
• Copying others instead of being unique
» Summary
• Micro businesses are easy to start and need less money
• They give you freedom and control over your work
• But they also need time, planning, and hard work
• You must handle daily and big problems smartly
• Always give good service and manage money wisely
» FAQs
What is a micro business?
A micro business is a small business that usually has 1–5 workers and low costs.
Is it easy to start a micro business?
Yes, many micro businesses can start with little money and from home.
What is the biggest problem in micro business?
Most people face money problems and too much work.
Can I run a micro business alone?
Yes, but it’s better to get help from family or part-time workers.
How can I grow my micro business?
Start small, market well, give good service, and grow step by step.