Exploring Micro-Business Enterprises in Nicaraguan Barrios

Kimberly Maiocco, Carl Lee Tolbert, Jordan Turner & Kimberly Quarles Posted on
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DOI: https://doi.org/10.64010/KNCM8170

Abstract

Many undergraduate students begin their academic journey with aspirations to launch entrepreneurial ventures. Integrating entrepreneurship into undergraduate programs offers to develop practical skills and critical thinking. This study engaged business students as observers, providing firsthand insight into running a small business in different cultural settings, specifically through the experiences of micropreneurs in Nicaragua. Small business ownership in this context offers a modest livelihood amidst the challenges of poverty; however, such ventures often face significant obstacles. The research, conducted alongside an entrepreneurial seminar, aimed to investigate the challenges, successes, economic contributions, opportunities, and strategies experienced by microbusiness owners. Using a phenomenological case study approach, the study engaged a focus group of 20 micropreneurs in Nicaragua, contributing to the limited body of research on microbusiness enterprise (MBE) activities in this region. The findings underscore the critical role of cross-border academic collaborations in empowering microbusinesses through training, faith-based support, and community resilience.

Overcoming years of dictatorship, civil war, and other natural disasters has been difficult and Nicaragua continues to be one of the most economically challenged countries in the Western Hemisphere (BBC, 2023). With a population of more than 6 million, the distribution of income is disproportionate, and the country is classified as a low-income economy in Central America. Recent economic challenges have been intensified by factors such as COVID-19, political instability, and the impact of hurricanes (Central Intelligence Agency, 2024). The economic forecast for the country is considered uncertain, minimum wages are low, and there are growing challenges of poverty and food availability (Central Intelligence Agency, 2024, U.S. Department of State, 2022). Pisani (2018) writes that even during economic challenges, business enterprises can be developed and may flourish. Sharma (2019) indicates that enterprises can create significant economic advantages for individuals. Quingco and Leonoras (2020) underscore the pivotal role that micro-business enterprises play in sustaining and fostering economic growth. Ukanwa et al. (2022) discovered the critical socio-economic role micropreneurship plays in offering an income source for families where poverty management and survival create extreme circumstances.

Entrepreneurship and micro business activity are niche opportunities in rural and impoverished areas of Nicaragua, and connecting academic experiences to micropreneur practices benefits both collegiate exploration and micropreneur growth. The study aims to examine the challenges and opportunities encountered by micro business owners and entrepreneurs operating within Nicaraguan barrios, providing insight into the unique circumstances that impact these ventures. The study objectives were as follows:

  1. Investigate and understand the challenges faced by micro business entrepreneurs in Nicaraguan barrios.
  2. Assess the strategies employed by micro business owners to overcome the challenges inherent to their ventures.
  3. Explore and analyze the impact of micro business ownership and entrepreneurship on the economic development of Nicaraguan barrios.
  4. Evaluate perceived opportunities available to micro business entrepreneurs in the barrios of Nicaragua.

Rashid and Ratten (2020) indicate that more qualitative research in developing countries will help to understand the phenomena better. While studies on micro business entrepreneurship are scarce, business research in Nicaragua is even more limited and this study aimed to address the existing gap. 

This study employed a phenomenological case study approach, which seeks to explore participants’ lived experiences within a specific context. This approach was appropriate for capturing personal motivations and business practices. This study sought to gain a better understanding of the unique challenges and opportunities faced by micro business entrepreneurs in the barrios of Nicaragua. A focus group of 20 microbusiness owners was conducted to gather detailed narratives about their entrepreneurial journeys. The phenomenological method allowed the study to emphasize the perceptions of the participants, contributing to the limited research on microbusiness enterprise (MBE) activities in this region. Undergraduate business students investigating the daily struggles and successes of these entrepreneurs, provided insight on how to navigate obstacles, manage businesses, and perceive success. The research also explores the broader economic impact of these ventures on local communities, examining how micro businesses contribute to the region’s development and growth. Moreover, the study highlights the strategies that entrepreneurs use to overcome adversity, shedding light on the resilience and resourcefulness required for sustaining small businesses in challenging environments. The implications of this study are significant; it provides valuable insights into the support needed for these businesses to thrive, offering recommendations for targeted training, resource allocation, and community-driven initiatives that could empower micro entrepreneurs, enhance their economic contributions, and drive long-term sustainability in Nicaraguan barrios.

Literature Review

The World Economic Forum (2021) indicates small and medium sized businesses make up more than 90% of business worldwide. The multifaceted nature of microbusinesses offers insight into its economic contributions, entrepreneurial characteristics, challenges, and opportunities. By examining these dimensions, this review seeks to provide an understanding of the vital role microbusinesses play in fostering economic resilience, both in developed and developing economies. Through an analysis of existing literature, this study highlights the challenges, successes, opportunities, economics, motivation, and the impact of faith that define the microbusiness landscape.

Microbusiness

Microbusinesses play a vital role in shaping economies worldwide, serving as a cornerstone of the business landscape in every region (Henley & Song, 2020). These small enterprises contribute to economic growth by creating jobs and reducing poverty (Eze & Lose, 2023). Many entrepreneurs start microbusinesses to achieve personal and financial success or to cope with external pressures like unemployment (Ly-Le, 2023). 

In the aftermath of the pandemic, countless individuals embraced small business ownership to recover from job loss, pursue personal passions, or enjoy freedom from traditional workplaces (Caplan, 2021). In the United States, microbusinesses—businesses with fewer than 10 employees—make up most employer firms and are crucial in driving economic progress (Caplan, 2021; Han et al., 2024; Xu et al., 2020). Globally, these businesses often provide disadvantaged groups with employment opportunities and a chance to break cycles of poverty (Ergo et al., 2024).

Microbusinesses often require resources to foster growth and generate wealth, particularly in underserved populations (“Survey Reveals Key Opportunities and Challenges,” 2024). While microbusiness owners frequently face resource challenges, many remain optimistic, inspired by the possibility of improving their lives and supporting marginalized communities through entrepreneurship (Parkinson, 2024). Additionally, Eze and Lose (2023) emphasize that smaller businesses often thrive due to their agility, enabling them to adapt more swiftly than larger companies. Overall, microbusinesses play a crucial role in both developed and developing economies, driving job creation, economic growth, and poverty alleviation.

Entrepreneurship

Microbusiness leaders are described using various terms, including solopreneurs, micro-entrepreneurs, rural entrepreneurs, and simply entrepreneurs. Xiong et al. (2018) define micropreneurship as entrepreneurial activities constrained by resources and scalability, primarily aimed at the owner’s survival. Anderson (1995) emphasizes that entrepreneurship involves a combination of hard and soft skills, along with personal values, which enable individuals to identify and seize opportunities. There is also an influence of social context on the entrepreneurial process. In many parts of the world, entrepreneurship is a vital survival strategy for impoverished people. Li and Setiawan Sanusi (2023) distinguish entrepreneurs based on their motivation, whether driven by necessity or opportunity.

Kimmitt et al. (2020) note that while many pursue entrepreneurship for freedom, this is just one aspect of its broader benefits. As entrepreneurship has expanded significantly in recent years, its success largely depends on the ability of entrepreneurs to transform ideas into thriving businesses (Alawamleh et al., 2023). However, despite its appeal and potential rewards, entrepreneurship—especially in the context of microbusinesses—remains fraught with numerous challenges that can hinder growth, sustainability, and long-term impact.

Challenges

Although many factors challenge owners, several have implications for small business ownership in developing countries, including marketing, limited access to capital, insufficient entrepreneurial education and training, inadequate business support, and restricted access to necessary resources (Sarmah & Saikia, 2023). Parkinson (2024) highlights that poverty in any form presents a significant barrier to entrepreneurship. Most small businesses require capital but struggle to attract investors, while investment companies find it challenging to contribute to these ventures for various reasons (Ndlovu & Takawira, 2023). In the context of this study, these challenges are even more pronounced, as many micropreneurs live in extreme poverty and have little to no access to startup capital or formal financial resources.

Alawamleh et al. (2023) further emphasize that entrepreneurs often face challenges due to a lack of practical experience and skills. Since entrepreneurship requires navigating unfamiliar territory and fostering innovative thinking, insufficient education, resources, and opportunities exacerbate these difficulties. Dzingirai and Ndava (2022) note that small family-owned businesses often struggle with cash flow issues, insufficient cash reserves, and a lack of financial expertise, with cultural factors also influencing poor financial management. Quezada-Flores et al. (2022) found that training is a critical investment in small business ownership but most lack access to resources and finances to invest in this endeavor.

In emerging economies, public policies, educational initiatives, and academic preparation for entrepreneurs can create pathways to economic opportunities. However, in low-growth economies, such support systems are often unavailable (Abreu et al., 2024). Ly-Le (2023) found that new entrepreneurs frequently struggle with managing day-to-day operations, overseeing business functions, juggling multiple responsibilities, and securing adequate working capital and cash flow support. Kindström et al. (2024) suggest that small businesses often struggle due to a lack of training, knowledge, and experience, and the added difficulty of adjusting to constant changes. Despite facing numerous challenges, entrepreneurs demonstrate resilience and adaptability, often finding innovative solutions to overcome these obstacles.

Successes and Opportunities

As entrepreneurship evolves, the importance of resources such as microfinance, training, and financial management workshops becomes increasingly evident in fostering business success. Haq et al. (2021) state that success can equate to survival, which can be achieved by meeting customer needs and implementing a customer-centric approach to business practice. Kaes et al. (2024) determined that entrepreneurial grit contributes to both nonfinancial societal and financial success. Additionally, learning from rival firms can enhance entrepreneurial capabilities and contribute to firm success outcomes (Zulu-Chisanga et al., 2023). Munawaroh et al. (2023) found that entrepreneurial failure can serve as a foundation for future success and enhanced business performance. Arslan et al. (2022) found agility and adaptability contributed to small business survival and success. Ranabahu and Farzana (2022) found that microfinance successfully empowered women and led to the creation of new businesses.

Moreover, the broader economic impact of small businesses is undeniable, as they contribute significantly to GDP growth, employment, economic stability, and create an abundance of prospects. Opportunities for entrepreneurial growth include acquiring fundamental knowledge and skills, as well as receiving general support (Lose & Ikenna, 2023). Dzingirai and Ndava (2022) suggest that financial institutions and governments should provide targeted workshops on financial management, which would help family business owners make informed decisions to improve their financial practices.

According to Ndlovu and Takawira (2023), investment firms have substantial opportunities to support and benefit from the growth and development of small businesses. Kindström et al. (2024) note that most small business owners seek growth, and there are opportunities to assist owners in understanding business modeling, leadership elements, and the management of people and resources. Entrepreneurs should consider opportunities for attracting new customers and pursuing growth, particularly in the face of environmental distress (Gambirage et al., 2023).

Economics

Across the globe, many countries recognize the crucial contribution of small businesses to economic expansion (Eze & Lose, 2023). Small and medium enterprises (SMEs) serve as the backbone of developing economies, playing a critical role in driving growth and stability (Ly-Le, 2023; Ndlovu & Takawira, 2023). By 2024, small businesses were projected to contribute over $2.3 trillion to the global GDP, emphasizing their economic significance (CISCO, 2020). Furthermore, the number of family-owned businesses has been steadily increasing (Dzingirai & Ndava, 2022).

Entrepreneurship serves as a sustainable solution to address economic challenges (Bruton et al., 2013). However, entrepreneurs in developing countries often face weak and unstable institutions, which create additional obstacles (Xiong et al., 2018). Despite these challenges, entrepreneurs in low-income situations demonstrate resilience by finding creative solutions and utilizing available resources (Santos & Neumeyer, 2023).

Eze and Lose (2023) emphasize that small businesses not only reduce high unemployment rates but also serve as mechanisms to address economic disparity and uplift the underprivileged. Rural entrepreneurs adapt their processes to operate within lean economic environments, responding flexibly to dynamic conditions (Anderson, 1995; Anderson, 2000). Access to financial support during the early stages of business creation remains a critical factor in motivating and sustaining entrepreneurship (Naser et al., 2009). Whether driven by necessity or opportunity, entrepreneurship is a powerful path for personal empowerment and societal progress, providing chances for growth and resilience.

Motivation

Entrepreneurial motivation is the internal drive that propels individuals to achieve specific goals (Saoula et al., 2023). Exploring the factors that motivate individuals to pursue business ownership is crucial, especially in challenging environments. These motivations help shape an entrepreneur’s resilience, decision-making abilities, and long-term success. Ly-Le (2023) identified several motivating factors, including dissatisfaction with employment, family support, and the necessity to provide self or family. These factors were categorized as either push or pull motivations. Entrepreneurs often start businesses out of necessity, driven by limited job opportunities or the need to enhance personal income, while others are motivated by a desire to contribute to societal well-being or improve economic conditions for their communities (Saoula et al., 2023). Entrepreneurs who are motivated are more likely to sustain their business. Motivating factors are diverse and provide valuable insight into the entrepreneurial journey, including the internal and external factors that influence the creation and maintenance of a business in the face of economic and social challenges.

Faith-Based Entrepreneurship

Faith-based entrepreneurship incorporates spiritual values into business practices, shaping the motivations, decisions, and objectives of entrepreneurs who aim to create economic and social value within their communities. This approach is deeply influenced by the founders’ religious beliefs, which guide their business practices and long-term aspirations. Religion continues to shape not only entrepreneurship but also founder identity (Delichte et al., 2024). Entrepreneurs with strong religious identities often prioritize a customer-centric approach, trusting that their faith offers protection and guidance in their ventures. These religious values not only influence their business decisions but also mold their entrepreneurial journeys. Religious beliefs provide a moral compass that helps guide decisions in business (Rietveld & Brigitte, 2022). The idea of faith-based entrepreneurship connects the importance of spiritual values and an ethical framework that shapes how entrepreneurs approach their ventures. Understanding how values affect business decisions provides insights into balancing economic goals with community-centered objectives.

Methodology

A focus group of purposively chosen micropreneurs in Masaya, Nicaragua was convened on December 12, 2023. The administration team comprised three faculty members, six student researchers from Truett McConnell University, and one local translator. The focus group had 20 participants; the process lasted approximately 120 minutes and was recorded in English with speech-to-text transcriptions completed using software developed by Otter.ai. In preparation for the study, an independent institutional review board (IRB) was created to ensure that the participants were treated ethically and with care, as with any other research in which the lives of individuals are examined (Health and Human Services [HHS], 2021; Koro-Ljungberg et al., 2007). The IRB reviewed Title 45 of the Code of Federal Regulations Part 46—also known as the Common Rule—and approved the research aims and objectives of this study.

The approach to the focus group study was to undertake what Kidder and Fine (1987) called the “Big Q” approach to qualitative phenomenological research. The reflective process emphasizes an unstructured inductive development of the questions asked during the focus group and the elucidatory process of thematic coding (Braun & Clarke, 2019; Kidder & Fine, 1987). The reflexive thematic analysis (RTA) by design differs from the positivist approach to thematic analysis, where triangulation, codebooks, multiple coders, and saturation are necessary (Braun & Clarke, 2019). Instead, the emphasis of RTA is on a more profound and critical application focusing not on a singular truth but on the recognition of multiple situated truths (Braun & Clarke, 2019). The goal of phenomenological research is to produce a rich, nuanced, and reflective account of the lived experience of participants. The RTA coding process used MaxQDA qualitative software and required multiple coding passes, creating over 70 initial codes.

Reflective Themes

In this section, the concentrated themes produced in preparation for the discussion comparing the themes to the study objectives will be presented with clarifying refinements based on the literature. The aims of the study were primarily ignored for the first two rounds of coding to avoid influencing the direction of the analysis. In later rounds, notions of challenges, impacts, opportunities, and strategies were introduced to understand the deeper trends better. As with the RTA, the themes at first glance do not seem to align directly with the initial tones of the research until both the reader and investigator are reconciled in a hermeneutic sense, cocreating the impressions of truth (Ricoeur, 1981). 

The Motivation of Necessity

The first concentrated theme distilled from the initial codes was the motivation of the micropreneurs behind creating their micro-businesses. It was often unclear if the business was a remnant of a family tradition, but there was a collective sense behind necessity. As noted earlier, SMEs make up most companies in Nicaragua and contribute significantly to its workforce stability (Ly-Le, 2023; Ndlovu & Takawira, 2023). The traditional notions of why individuals take advantage of the low barrier to entry to create and sustain a micro-business, as in the U.S., for instance, may be motivated by opportunity (Caplan, 2021); however, the group sentiment was that it was more out of necessity, noted by Subject 4’s almost pleading frustration: “I changed locations. I started from zero. And I had 15 days where my business just stalled? It wouldn’t go down. It wouldn’t go up. It was stalled” (para. 69). As a negative case, none of the subjects mentioned any formalized process of taxation or the need for business approvals, indirectly confirming the large size of the informal economy common to the region (Dzingirai & Ndava, 2022).

The motivation also manifests in selecting business niches, often described as essential goods and services based on the social impact on the local community, as expressed by Subject 15 focusing on the social aspects based on low prices: “They tell me your prices are too low compared to the competition. We’ve been competing for price, and people there know that we love God, and we also talk a lot about God. We share the Word of God in our business” (para. 46). The selected niches also seemed to preserve the local culture based on fears of assimilation by alternative larger cultural forces competing in the same market, as described by Subject 11 who indicated business differentiation in a large grocery store by offering homework assistance to children, echoing the significance of family and church culture ignored by outsiders and more extensive commercial operations (para. 34). 

Another motivational area uncovered by the literature that was not mentioned directly by the focus group discussions was gender, as gender is often cited as a motivator to create a micro-business because of ease of access (Ranabahu & Farzana, 2022). Microbusinesses can offer more accessible opportunities for women who face barriers in formal employment. In the case of Nicaragua, this insight is especially relevant: many women, often unmarried or the primary caregivers in their households, lack the formal education needed to secure employment outside their communities. Consequently, they are motivated to create microbusinesses as a means of contributing to their family’s income, using entrepreneurship as both a necessity and a form of empowerment in the face of limited options. It is assumed, based on the gender heterogeneity of the group, that the marginalization of the community outweighed the importance of individual access. Additionally, the competition was sometimes identified as female (and family relation) by Subject 2, “So, my stepmom has another store and that is my competition … [but she isn’t] social with people” (para. 18).

Isolation Prompts Imitation

The second concentrated theme is a combination of isolation and imitation that became equally apparent in several contexts of the focus group discussion. Kim (2013) discusses the importance of geographic isolation and the opportunity for outside innovation, as the isolation becomes acutely susceptible to external influence based on homogeneity and imitation. Subject 17 sums up the everyday experience, “In Nicaragua, there’s a lot of envy. I don’t know if it is the same in other countries. Some people, if they see that you’re selling something and these people aren’t really creative people, they sell what you are selling. They sell what you sell. A solution though that I have come up with is that this competition represents a challenge” (para. 22). Complementary to Kim (2013) noted the improbability of innovation in isolation and all note that innovation in isolation, when possible, makes the process challenging to replicate the unique value proposition crafted, unlike in local commodities transactions.

The isolated knowledge also becomes evident in the discussions over price, customer service, and value-added to understand competition and potential business strategies to sustain or grow their business. Subject 3 described their pricing approach, “… we have our business with a lot of variety and [because our prices are a little lower, other businesspeople] come to us to buy when they need the same product that we sell. In one sense it helps the customer because we give them a better price” (para. 6). The focus was almost entirely on pricing; however, when prompted by the interviewer, the subjects were unable to provide the names associated with value-added service or differentiation (para. 36). As indicated by several participants, the difficulty is the limitation of knowledge transference outside of what is available within the isolated community. 

Again, pricing became a dominant issue when discussing a subject’s business at first glance. This focus on pricing is not surprising as similar markets have several critical factors: limited financial resources, economic survival strategies, systematic inequities, lack of safety nets, and cultural norms curated by practical realities (Lederman & Porto, 2016). What was missing was a single niche that offered significant profit or success, even in the downtrodden community. The reason for this exclusion is unknown, as the focus group format may have prevented some descriptions of novel business success based on fear of local imitation or pressure to conform based on familiar or church mentorship. An interesting note is that the subjects feel they are being innovative based on a narrower view created by the isolation akin to Subject 1 noting, “I make wine, there was a group of workers that came once, and [I] gave them wine [to taste sample]. Then they told me they needed three bottles of my wine” (para. 63).

Community Relationships

The relationships between competition, customers, and other business owners within the community also create a critical theme in several ways. Most of the subjects knew about the competition and, in one case, even had a familial relationship with the competition, as mentioned by Subject 2 (para. 18). In one case, a humblebrag, meaning self-promotion disguised as a complaint, was used as the subject described the competition purchasing clothes from her based- on quality (Sezer et al., 2018). Subject 13 boasted, “I have competition about a block away. I sell used clothing. I do okay, but my competition comes to my business to buy my clothing [to resell but to wear them herself]. I have a better-quality product” (para.16). Based on the isolated community, the relationship is as expected and potentially has even deeper roots if the individual’s families and histories were assessed by going back several generations (Allan, 2021).

The Christian aspect of relationships also seemed prevalent in many areas where subjects professed Christian views and strong ties to the local church community, in addition to having businesses and providing a relationship for prayer and fellowship. For example, Subject 17 stated, “I am a pastor. My business glorifies God. I have to be an example for the church and for men. How and in what way? Well, when you talk about the faithfulness of God to people, and you can tell them God is faithful, and I can prove it with my business” (para. 75). Werner (2008) noted a geographic distinction in the manifestation of Christian views among business owners, including the additional linguistics associated with Christian businesses, also found in several discussions across the focus group. Curiously, Lu et al. (2024) discussed cultural fit being driven by linguistics that assists with some of the understandings noted by the subjects and the customer base seeking sameness outside of routine transactions. For clarity, the church community added word-of-mouth publicity and attracted like-minded customers.

The culture fostered by the church community seemed to transcend their spiritual mission. They become centers of hope, resilience, and transformation, addressing not only the spiritual needs of the focus group but also the economic, educational, and social challenges the subjects face. Subject 15 explained how the Christian clients supported the church community, “We’ve been competing for price, and people there know that we love God, and we also talk a lot about God. We share the Word of God in our business. And in that way, we’ve had a peak in our growth and in the name of Jesus will reach further—[with] further growth” (para. 46). 

An interesting note was made when the interviewer asked if the participants worked on Sundays. The debate on Sunday work has been a global phenomenon for Western countries for a significant period, and it is well-known that the social context is beneficial from both Christian and secular perspectives (Charles et al., 2021). The challenge with Sunday work is that the incentive must be high enough to justify the social and spiritual opportunity costs (Martin et al., 2011). The larger question of the subjects that are always open is whether the motivation is more loss of revenue and missing a transaction as a function of a heuristic strategy, expectancy by family or group, or financial struggle. One would expect non-verbal or tonal shifting during the interview, but it is unclear whether the participants, being Christians, felt some guilt when the question was asked.

Visions for a Better Future

The subjects did not complain, mention any notion of poverty, or being somehow victimized in their community, as there was an overall sense or vision of a better future – a shared vision that could quickly become a catalyst for economic, social, and cultural transformation. The hope is to improve immediate living conditions and become the impetus for long-term community resilience and prosperity. The evidence can be seen precisely through two sections of the original codes: the desire to understand and acquire strategic business skills and strengthen social networks through family and church construction. 

As mentioned earlier, the desire for new understanding and skills started with the interviewer explaining strategies described by the subjects as value-added services and differentiation. Going beyond transactions and focusing on customer experience resonated with the subjects. For example, as Subject 5 put it, “It’s not, it’s not just about having a big business. It’s about a good environment. There needs to be a good environment and good service” (para. 51). The desire for new skills and understanding of the subjects was overwhelmingly positive. 

The discussion continued with the interviewer explaining that sharing ideas within the community also assists with better business strategies and strengthens the community, “One of the best things, as an entrepreneur, is you don’t operate alone. You work with other entrepreneurs and share experiences with each other. You can hear ideas, successes, challenges, and that will help you grow your business. I would also encourage you to root for your rival. Root for them. We all want to beat our competition, right?” (para. 67). The resonance of this message was also positive because the group felt that the strength of the Christian community was equally crucial to the success of the individuals, and, despite the necessity, the subjects give to the church, as described by Subject 8, “I do feel like my business glorifies God because out of every shoe, [I put] money apart to give to the church” (para. 87). 

In summary, four complementary reflective themes were created from the focus group. Necessity motivated the participants, who often focused on essential goods and services within the local community. The choice of the business niche was determined by imitating other businesses within an isolated market. The intense focus on competitive pricing and limited knowledge transfer indicated the isolated but community-driven focus. Community relationships fostered a support network based on shared values, particularly with family and church members. Lastly, the subjects’ vision of a better future was predominant despite the challenges, as they expressed the importance of business skills, strategies, and strengthening the local social network. 

Discussion

To restate the focus of the study, the goal was to have a greater understanding of the unique challenges and opportunities faced by micropreneurs in the barrios of Nicaragua—the lived experience centered on the daily struggles, navigating obstacles, managing a business, and perceiving success. The significant outcome of the study was valuable insights into training recommendations, resource allocation, and community-driven initiatives that impact the lives of micropreneurs and the communities they serve. This section will address the research questions and provide the context to reconcile the thematic findings to realize the finality of the study and inspire the next generation of cross-cultural research. 

Challenges of the Micropreneur

The literature discussed general challenges across access to capital, education and training, business support, and essential business resources, in addition to more regionally based concerns regarding political or environmental instability, market demand, and cultural factors. The thematic findings noted the source of challenges, from the motivation of necessity to the process of finding a quick yet sustainable business that offers revenue for the family. Based on the need and context of the market, the chosen businesses are not innovative in the broader environment. So, by design, the primary singular challenge is the business niche and whether the chosen business is correct for long-term investment. Yet, the decision may be best based on factors such as economic volatility, infrastructure deficiencies, or bureaucratic hurdles. Thus, the micropreneur may be marooned and seek the best refinement despite the threat of imitation.

The other thematic observation is in the context of pricing and transactional focus. As noted, almost all subjects stated that lower pricing is a significant strategy in the local market. The challenge becomes the transcendence of low-cost transactional business to value-added service coupled with product, allowing for differentiation and higher profitability. Despite not knowing the popular business parlance, many subjects understood the need for value-added services, customer experiences, and differentiation heuristically. Therefore, the significant challenges for the Nicaraguan micropreneur are to gain profit in a highly imitative and transactional market. 

Opportunities and Strategies of the Micropreneur

According to the literature, opportunities start with access to microfinancing and some semblance of regional and community support for SMEs but broaden into areas directly and indirectly addressed by the subjects. However, thematically, the opportunities almost entirely focus on bridging the skills gap and strengthening the local community. The skills gap was addressed to some extent by the questions asked during the focus group to gauge the knowledge of business acumen, networking, and marketing. Many subjects understood the basics, but the refined application eluded the group. Opportunities in vertical markets such as tourism, agriculture, artisanal products, or the digital economy were never discussed but offered possibilities fostered through bridging the noted isolation of the local market. 

Additionally, notions about learning from rivals and the influence of cross-cultural interactions from the literature were indirectly discussed with the group, specifically with the interviewer explaining business concepts. The notion of having a family relationship with the competition did not seem shocking to some, as some relatives were considered rivals. Still, the thought of sharing information and ideas was novel for others. The influence of cross-cultural interactions was welcomed, and the creation and administration of the focus group was the first step into future collaborations.

The primary strategy for existing businesses was to adapt from a customer-centric focus. As noted, the niche, micropreneur, and community are somewhat fixed in the local market based on previously discussed factors in the short term. The networking and marketing aspects begin by understanding what drives customer engagement, satisfaction, and loyalty. Three main areas were discussed with the focus groups: first, customer feedback and insight, offering an adjustment to current practices; second, the ability to engage customers through relationships, potentially obtaining customer referrals by expanding the network, primarily through the church and family; and, lastly, collaboration with others in the community that could offer joint promotional opportunities. The short-term strategies provide an opportunity to move away from some of the purely transactional commerce and focus less on price, which is identified as a sound theme.

In the long-term strategy, the notions of innovation bridging the isolation of the local market is paramount to fitness, but it should also include training and knowledge transference. The understanding is that each micropreneur becomes their brand, and the brand identity must be strategically fostered. In this case, many in the focus group span generations of family business, including past maladaptive behavior that must be corrected. The strong brand also originates from focusing on short-term goals of customer-centric focus, as customer loyalty is foremost. Diversification of revenue streams was again alluded to in the thematic analysis. Still, it was based on necessity, not a long-term strategy to protect against shifting market demand. The diversification also leads to the addition of technology such as e-commerce and mobile “gig” in terms of service opportunities as the market changes. 

Economic Development of the Community

The fitness of the micropreneur has a significant social impact on the development of the local community in many ways. The thematic analysis complemented the literature review by illustrating an almost symbiotic nature to the micropreneur family and community, specifically through the church. The first impact would be the continued support of easy access to opportunities for women and marginalized communities; equally important would be the preservation of the cultural heritage embodied by the relationships across the community.

The long-term success of the micropreneur strengthens the community through economic development through job creation; community infrastructure built with financial support provided to the church, and fostering education outreach becoming a normative behavior, lessening the isolation of the community and thus exposing its members to greater possibilities. The themes all supported the idea that despite the necessity of being a micropreneur, the positivity of attitude and success has a ripple effect, uplifting the community while achieving individual goals.

Conclusion and Call for Future Research

The study highlights the resilience and resourcefulness of micropreneurs in Nicaragua. It emphasizes the critical role of community networks, microfinancing, agency support, and particularly family and church, in supporting business endeavors. Despite the challenges posed by limited access to capital, market isolation, and imitative competition, micropreneurs show a strong commitment to improving their local communities through economic development. Given the findings, policymakers, NGOs, or business development agencies that work with microbusinesses in developing regions should consider accessible microfinancing, developing and offering training programs to close the skills gap, and fostering collaboration among micropreneurs through community-based seminars and networks. The study also stresses the importance of bridging the skills gap and fostering cross-cultural collaborations to empower microbusinesses.

Future research should explore the long-term impacts of cross-cultural entrepreneurial training on microbusiness sustainability and growth. Additionally, further studies could examine how faith-based entrepreneurship influences business strategies, community engagement, and overall business success. A comparative analysis of micropreneurs in different regions or countries could offer deeper insights into the universal and unique challenges they face. The academic literature contained several studies on women entrepreneurs, but a further exploration of marginalized communities and gender dynamics of microbusiness ownership would contribute to the body of knowledge. 

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