Types of Companies: Micro, Small, Medium, and Large Size Businesses

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Contents
Introduction 2
Section 1: Different types of companies and how they work
P
1

Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors
affecting business p
Conclusion p
Reference List p
Introduction
The main aim of this report is to raise the understanding about
various forms of companies and business that operate in a
country. As there are large number of companies and business
2

so every type of business is having special characteristics and
features. This report also contains details about various
organizational structure along with PESTLE analysis in the
contrast of Unilever.
Section 1: Different types of companies and how they work
Micro business:
Micro business are very small business. Number of employees doesn't matter or
constitute small business. As per Companies House, any business would be
considered as micro business if its turnover is less than £632,000. However, if the
number of employees are less than 10 then that should also be considered as very
small and micro business (What is a micro business?, 2021). In addition to this the
balance sheet total should also not be more than £316,000 for covering under the
definition of micro business.
Characteristics:
 High contribution in the growth of economy in terms of raising income or
purchasing power.
 Generate employment opportunities for those who need job but have no
education and lack of education.
 For financing their business they usually dependent on micro finance and
micro credit.
 Grab good support of government.
For example:
Mantons Cards is one of the micro and famous business of UK which usually deals
in a variety of quality cards and gifts.
Small business:
A business is said to be small if its annual turnover lies in the range of € 2-10
million. This means that its turnover should be above €2 million but not
more than €10 millions. In addition, of this the number of employees must
3

not be more than 50 (Rosling, 2020). If these conditions will be satisfied by
any business then only it will be categorized in small business.
Characteristics:
 Highly focused over their goals along with ready to take good moves towards
driving success.
 Always ready to bear risk.
 Self motivated and reliant. This means that as they are micro business, so
they do not need any external motivation instead they are self-motivated and
self centered towards their goals.
 While performing their operations they usually take expert advice.
 Close monitor and control over finance.
 As they are small business, so they need hard work in order to
establish their business. But those who run this business have ability
to separate their work and family. This means they are usually more
efficient in comparison of other form of business.
For example:
Cafepod coffee company which is one of the small company with a broad
coverage over the market.
Medium size business:
A business is categorized under this category if its turnover is more than €10
millions but it should be less than then €50 millions. However one more
requirement of this category is its number of employees. This means that
the number of employees should be more than 50 but it should not exceed
250.
Characteristics:
 Since, they have no access to grab more resource due to availability
of fewer funds. But, they have capability to run and operate their
business in limited resources.
4