Types of Businesses and Organizational Structures

Business in Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
Micro Business.......................................................................................................................3
Small Business........................................................................................................................3
Medium Size Business...........................................................................................................4
Large Size Business................................................................................................................4
SECTION 2......................................................................................................................................5
Sole Trader Businesses...........................................................................................................5
Partnership..............................................................................................................................5
Limited Liability Business.....................................................................................................5
Public Limited Liability Business..........................................................................................6
Cooperative.............................................................................................................................6
SECTION 3......................................................................................................................................6
Identification of different organisational structures their explaination..................................6
PESTLE Analysis...................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are different type of businesses available to choose from when establishing a
business organisation, each enriched with different features, rules and legal structures. The aim
of this report is to develop an understanding regarding different types of business operating in
the economy along with their respective size. In this report the author will include
characterisation of different types of companies along with their description, evaluation of
different types of business structures and how external factors affect business of any
organisation. There are five major types of businesses which are listed below, namely; sole
proprietorship, partnership, limited liability businesses, corporations and cooperatives.
SECTION 1
There are different methods to classify the business organisation as per their sizes. These
businesses are classified on the basis of certain factors, namely; number of employees and
turnover. Businesses can be classified under following categories on the basis of their size (Need
To Know Micro Business Statistics UK 2021, 2020). The below information is cited after
considering the data provided by Companies House (Camacho and Singh, 2020).
Micro Business
Micro businesses are very small business which operate with less than 10 employees.
These micro entities must have a turnover less than £632,000 along with a maximum balance of
£316,000 in its balance sheet (assets). If at least two of these conditions are not fulfilled by a
business organisation then that organisation will not be classified as a Micro Business
Organisation. Micro business are termed as engines of growth which contributes to 21% of the
UK's total turnover. This type of business has a characteristic that it operates while considering
short term needs of the business (Amrin, 2019). These establishments face exceptional
challenges because of their small size and limited capacity. The business has to work on
satisfying the short term financial needs of the organisation in order to operate efficiently. “Boss
Brewing Company” is an example of Micro Business Entity.
Small Business
Small businesses are businesses which operate with a limited workforce that averages
between 10-50 employees. These entities must have a turnover more than £6,32,000 with a
maximum limit £6,500,000. Among the above said characteristics if not even two are featured in