Examination of Elements Influencing the Income Level of Micro Enterprises

Micro entities income and business sustainability

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May 26, 2026

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This research intends to examine the elements that can promote micro-entities functioning in both the formal and informal sectors, particularly regarding income stability, enabling these micro-entities to grow and achieve sustainability through a descriptive approach. The descriptive research method does not seek to identify causal links between variables or evaluate hypotheses; instead, it is conducted to provide a description of a variable or phenomenon grounded in established facts. The research approach was conducted via interviews, observations, and literature reviews. Information from interviews, observations, and literature reviews was analyzed using the SWOT (Strengths, Weaknesses, Opportunities and Threats) model to pinpoint internal strengths and weaknesses, as well as external opportunities and threats influencing the income levels of micro-entities. The study's findings indicate that business adaptability, closeness to customers, technological advancements, and governmental policy backing through its initiatives positively influence income growth, whereas restricted capital, low digital literacy among micro-entrepreneurs, heightened competition, and economic volatility contribute to a reduction in micro-entrepreneur income.