Definition and Characteristics of Different Sizes and Types of Businesses

INDIVIDUAL
REPORT

Table of Contents
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
SECTION 1........................................................................................................................3
Definition and characteristics of micro, small, medium and large size business...........3
SECTION 2........................................................................................................................5
Definition and characteristics of sole trader, partnership, limited liability, public limited
and cooperative business..............................................................................................5
SECTION 3........................................................................................................................7
Determine organisational structure and how it influences business productivity..........7
PESTEL Analysis and it impact on business performance............................................8
CONCLUSION.................................................................................................................10
REFERENCES................................................................................................................11

INTRODUCTION
Business environment is a factor which plays a crucial role in organisation
success and growth. Business environment can be internal as well as external, where
internal business environment involves- internal management, organisation structure,
plans, policies, finance and others. Whereas external business environment involves-
competitors, suppliers, distributors and other factors (Avram and et.al, 2018). Business
environment plays a crucial role in smooth functioning of an organisation and
identification of such internal and external factors are necessary for effective
functioning. Marks and Spencer is a multinational retail business which was founded by
Michael Marks and Thomas Spencer in the year 1884 in London United Kingdom. The
retail company is offering the services through all around the world and offers products
such as apparels, home furnishing and improvement products, banking services and
food products. The report aims to define different size of business and their
characteristics. The report will also highlight types of business, organisation structure
and how external factors can create an impact on performance and productivity of
business.
MAIN BODY
SECTION 1
Definition and characteristics of micro, small, medium and large size business
Micro business
Micro business is smallest of small business where there are only a few
employees and such business operates in the same manner as a small business. Micro
business enterprise are majorly sole proprietors and generate smaller revenues (Blanc
Serrier, Ducq and Vallespir, 2017).
For example, Boss brewing company is a micro business which was established
by Sarah John and Roy Allkin in 2014. The company is a craft brewery company.
Characteristics

 The annual turnover of a micro business is under £ 2 million
 Micro business has not more than 9 employees
Small business
A business functions and operates on small scale level and involves less number
of labor, fewer machines and less capital to operate is a small business. It can be a
partnership, cooperative limited liability or a sole trading business (Daepp and et.al,
2015).
For example, Marshfield bakery ltd is a private limited share capital company
which falls under small business and the company manufactures quality handmade
cakes, seasonal goods, biscuits and snack bars which are distributed throughout
Europe and UK.
Characteristics
 The gross income of a small businesses under £10 million
 Small business has not more than 50 employees
Medium business
A medium organisation is neither large or small but false in between and the
investment in equipment’s can be more than 2 crores but cannot exceed then 5 crores
(Edison and et.al, 2018).
For example, Verdant leisure is a medium scale business which was started by
Andrew Wall, Bev Dixon and Graham Hodgson in the year 2010. The company offers
services of best holiday parks, quality park facilities, attractive holiday accommodation,
quality customer service and wide variety of holiday homes for sale around Scotland,
Northumberland and Country Durham.
Characteristics
 The gross income of a medium scale business is under £50 million
 A medium scale enterprise can have employees under 250
Large business