The entrepreneur — whether working alone or with a small team to undertake his or her venture, usually with just a small amount of seed funding — cuts a commonplace figure in today’s world of business. According to data from the Development Bank of Latin America (CAF), microenterprises represent 88 percent of total companies in Latin America, where, “they are engaged in subsistence and self-employment activities.”
In Europe, these small enterprises are more frequently associated with “industrial value chains of dynamic sectors; they participate in the development of technology and innovation and significantly contribute to exports.” According to the Spanish Association of Small and Medium-sized Enterprises (CEPYME), microenterprises and SMEs represent 99.8 percent of the “old continent’s” business community.
It is less usual for these small businesses from day one to benefit from the means to successfully launch a business. Often, they have to start from scratch, with few resources and the obvious drawbacks; nonetheless, there are also some positive aspects for the economy. According to the Stanford Social Innovation Review (SSIR), the benefits of establishing this type of venture are:
Products and services tailored to local economies
Microenterprises are very valuable for the economies where they are established. A study by the University Complutense of Madrid maintains that “they help local and regional economic development in the places where they perform their activity, by creating stable, valuable employment and by contributing to the modernization of said regions.”
Among the companies participating in BBVA Momentum 2019, there are several examples of microenterprises, which have no less of a local impact despite their small size. A good example is the Turkish company Batir, which is invigorating the local economy and raising awareness in the community with their offering of nutritious, vegan food products. “We empower farmers and local producers to transform the life of the community,” explains its co-founder, Başak Duru. They also provide children with workshops on healthy eating in order to ensure a positive impact on future generations.
