All micro-businesses are small businesses, but all small businesses are not micro businesses. It is based on the number of employees in a company. Your business is considered to be a micro business if you have less than six employees and is considered to be a small business if you have dozens of employees. Even if your company requires less than 50,000 to start, you are running a micro business.

Characteristics of a micro business:

• Financing and marketing are both important when it comes to these differences. Microbusinesses operate with lesser capital when compared to small businesses.
• Micro businesses are run by single-owners or solopreneurs.
• A few micro-businesses are simply early-stage small businesses.
• Most micro businesses don’t need registration with the state.
• Microbusiness owners who start as sole props always have the option of registering as a separate entity.
• It is harder to get capital loans for micro-businesses. Microbusinesses operate on smaller scales than small businesses on every level, including the scope of their customer base.
• Social media marketing is widely used in promoting micro businesses.
• Creating a website is the first and foremost task of the micro-business starters.
• Every micro-business owner finds his customers in his friends and the local community to make larger networks.
• Creating a business accounting software is important for every micro business.
• Microbusinesses have much smaller budgets.
• Creating an appointment scheduling software is an important task too.
• Create a project management software.

Characteristics of a small business:

• A small business is a privately-owned corporation, a partnership that has fewer employees and less annual revenue than a normal business.
• Small businesses can often implement the same quality management systems found in larger corporations.
• Small businesses are mostly socially responsible.
• The small businesses often run on a “shoestring budget” which means a tight budget.
• A small business is labor-intensive.
• A small business being tight-budget mostly uses indigenous technology.
• They are started with the motive of satisfying the needs and demands of a local area or community.
• Also, small businesses use sales tools.
• Furthermore, small business is most likely to get government contracts and low-interest loans.
• Small businesses usually have more benefits.
• Also, Small businesses need funding, a mentor, and legal counsel.
• A small business can be defined by various business regulations.