Business in Practices

Business in Practices

Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Section 1: What are micro, small, medium and large size of business organisations. Define
their Characteristics with some examples....................................................................................3
Section 2: different companies from sole trader to Cooperative and limited liability partnership
......................................................................................................................................................4
Section 3: organisational structure and external factors which are affecting the business
operations.....................................................................................................................................6
Using PESTEL analysis model explain how external factor affects the functioning of the
company.......................................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
A business can be defined as Enterprise in which the entity is engaged in commercial
industrial or professional activities. It can be for the purpose of earning profitability or social
purpose. It refers to the organised efforts of the workforce in order to produce and sell the
products and services into the competitive market (Anwer, 2019). The range of business
organisations can be from sole traders to international corporations. The report discussed the
classification of business organisations with context to their size and scope. The different types
of organisational structure and external factors which affect the operations of an organisation is
discussed with the help of the PESTEL model.
Main body
Section 1: What are micro, small, medium and large size of business organisations. Define
their Characteristics with some examples.
The business can be classified with respect to their size that are discussed below:
Micro enterprises: it is the company which generally has a workforce of around 9 people
who are working to get common goals and on their livelihood in an effective manner. The
turnover of such types of businesses are under £2 million. They are usually started with small
capital as most of the time these kinds of organisations are owned and managed by the sole
proprietor and kinds of companies are closely involved with respect to day to day activities
(Arnold, 2017). Mostly such organisations are founded in ruler and underprivileged urban
society.
Characteristics
 They are founded in order to satisfy the basic needs and wants of the owner itself.
 They are at a very small scale.
For example: stores of vegetables and fruits.
Small enterprises: it is another kind of business where the entrepreneur used to employ
more than 10 people but less than 50. The turnover of such companies is around £10 million. It
gives job opportunities to the local people which are used in order to support their economic