Microbusinesses, typically characterized by their modest size and limited scale of operations, encompass a diverse array of entrepreneurial endeavors. These businesses play a crucial role in fostering innovation, employment, and promoting economic growth. Despite their intrinsic importance, microbusinesses often face challenges, including limited resources, access to finance, economic crises, and regulatory constraints. Understanding the intricate dynamics of these challenges is essential for designing effective policies and support mechanisms that empower microbusiness owners to thrive in a competitive marketplace. This thesis includes three papers. The first paper investigates the influence of adopting business practices on the utilization of financial products and services by these firms. The second examines the incremental impact of introducing a free smartphone-based business training program called Expertienda for microentrepreneurs in Colombia. The third explores the moderating role of soft skills in shaping the responses of microfirms’ intermediate and final business outcomes to the shocks induced by COVID-19. The findings of the thesis suggest that improved financial inclusion can lead to enhanced business practices and overall development of microbusinesses in Colombia. Additionally, local promoters are instrumental in facilitating digital business training for microentrepreneurs. The intervention, which utilized local promoters, effectively increased the usage of the application. Furthermore, the thesis indicates that soft skills may play a crucial role in the adoption of new business practices, enabling microbusinesses to survive and thrive in the challenging environment created by the pandemic.
