Size Doesn't Matter: Microenterprises, a Profit-Driven Business Model

Microenterprises | Individual Skills and Open Innovation to Achieve a Profit-Driven Business Model

Microenterprises Focus on Individual Skills and Open Innovation Approaches to Achieve a Profit-Driven Business Model.

Size matters, for some. Whether it’s having lots of money or growing a big business, we live in a “bigger is better” culture. But why do we think size matters in business? Most likely because we aim for efficiency at low cost and reduced competition. However, if you dig deeper, you’ll see that these goals aren’t always achievable by following the “bigger is better” philosophy.

Over the past 20 years, entrepreneurial ideas have developed into ultra-lean and highly focused companies, known as microenterprises or Micro-Corps. These microenterprises are run by managers passionate about their ideas (whom we can call idea architects) who are so enthusiastic that they put company structure second and are ready to break the “bigger is better” rule. Breaking the rules can be fun, especially when it leads to rewarding results, but you need a brilliant idea that allows growth based on profit rather than size.

At Beetroot, analyzing the Micro-Corps phenomenon, we have selected practical actions to support a microenterprise:

Encourage Creativity

Instead of following a linear path when working on projects, idea architects in microenterprises tend to have greater flexibility that allows them to switch between ideas. They operate with fewer staff but always keep a creative member on the team.

Starting with a small team means having the ability to fully empower it, maximizing creativity in business.

Pursue Quality

Thinking “small” when tackling tasks encourages employees to set their own individual goals. Working toward self-defined goals rather than corporate goals produces a much higher sense of personal accomplishment and results in higher quality work.

Master Your Craft

Idea architects dedicate themselves to mastering their craft, constantly refining and perfecting their skills to manifest their passion in their vision. In a traditional company structure, there are too many commitments to allow time for honing the team’s mastery. This is a key difference between microenterprises and traditional companies that enables microenterprises to thrive today.

In microenterprises, employees are encouraged to learn something completely different from their daily routine and apply the acquired skills to their professional tasks. Transferable and diversified skills are the lifeblood of microenterprises.

Maximize the Power of Collaboration

Microenterprises, by necessity and structure, lean towards the open innovation model, a new strategic and cultural approach where companies choose to rely not only on internal ideas and resources but also on ideas, solutions, tools, and technological expertise coming from outside, often creating specific partnerships. Being part of a professional community like Beetcommunity is a perfect example of approaching open innovation, allowing companies to stay agile, flexible, and especially keep operational costs low.

Although passion and dedication are substantial in running a microenterprise, this business model has repeatedly demonstrated not only the ability to generate excellent profits but also to create a rewarding and stimulating entrepreneurial environment for the professionals involved.

Unlike traditional companies, microenterprises, focusing on individual skills and open innovation approaches, achieve ultra-lean business models capable of delivering excellent results.