Different Sizes and Types of Businesses: Definitions, Characteristics, and Examples

BMP3002 BUSINESS IN
PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SECTION- 1....................................................................................................................................1
Definitions, characteristics and examples of different sizes of the business...............................1
SECTION- 2....................................................................................................................................2
Types of companies, their definition, characteristics and examples............................................2
SECTION- 3....................................................................................................................................3
Internal and external factors impacting the different business structures....................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Businesses are operated with a motive to earn profit and to survive in the market. There
are different types of businesses based on their level of operations, characteristics, scope and
members. The project shall be highlighting the different types of businesses that are undertaken
by its members for the motive to earn profits by fulfilling the needs and wants of the customers.
It shows the businesses with different sized based on the level of operations that are carried out.
It shall further reflect the various external and internal factors that are imposed on the business
such that the performance of the company gets affected.
MAIN BODY
SECTION- 1
Definitions, characteristics and examples of different sizes of the business
Micro- business:- They are the type of businesses that operate on a very small scale level by
employing minimum employee, serving dozens of customers and generating profitability with a
turnover of minimum amount. These businesses include the companies sole trader, self-
employed and in the form of a small merchandising outlet. The major characteristics of micro
businesses shall be lower revenue, less employee or no employees, limited market area covering
fewer locations and highly motivated and confident employees (Tangour and et.al., 2019). They
are the highly risk taking business that enters the market with a small target market and expects
to succeed by attracting those consumers. Some examples of the micro businesses in UK are
Boss Brewing Company, Castle hill fire protection limited and Mantons Cards. These businesses
contain less than10 employee and a turnover of less than 2 million pound.
Small business:- A small business refers to one which is a privately owned corporation, sole
proprietorship, partnership that has employed less number of employees having lower amount of
profitability and less amount of revenue generation. It is limited in size and the market share that
is covered in terms of customers. They also have limited number of products and services that
are catering to the needs and expectations of the limited number of customers (Pelz, 2019). Some
key examples of small businesses in UK are Davison Canners, Marshfield Bakery and the Cafe-
pod Coffee company which are having employees less than 50 and turnover of 6.5 million
pound.
Medium sized business:- The medium-sized businesses are generally those which are either
operated by the family members or can be the businesses where the owners and the managers are
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