Different Business Structures and External Factors Affecting Businesses

Individual report

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN-BODY..................................................................................................................................3
Section1. Definition, characteristics and examples of micro business, small business, medium
sized business and large size business ...................................................................................3
Section2. Definition, characteristics and examples of sole trader business, partnership limited,
public limited liability and corporative..................................................................................5
Section3. Different business structure and external factors that affects businesses ..............6
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10
INTRODUCTION
It refers to an activities of the businesses that is conducted to reach the objectives of the
organisation. In this business environment play an essential role because it helps in identifiable
the various types of business and the organisations with their features and an justifiable example.
In includes the various terms like micro, small, medium and large business enterprise and their
structures involves sole proprietorship, partnerships, legal corporations etc. further this report

showcase the structure of the organisation that helps in gaining the objectives and earning higher
profits and at last analysis of macro environment is very essential because it helps in earning
gaining the competition so that company will survive for a longer period of time(Moro Visconti,
2016).
MAIN-BODY
Section1. Definition, characteristics and examples of micro business, small business, medium
sized business and large size business
Micro business
Definition- It refers to a very small type of business that is operated on the basis of very
limited resources and capital and they are established for feeding their individual family and
friends and focus only on sustainability on the area(Policy,2018).
Characteristic- The main characteristic of the micro business is that they only have 0-9
employees or less than that. due to there micro nature they could listen to their customers
effectively and know their taste and preference well.
Example- The best example of this type of business in UK is Isssoria that is established
in 2016 by Ibi Thomson where they provide the change management to the office services.
Small business
Definition- This type of business is competitively somewhat bigger than micro business
because in this enterprise 11-50 workers are given to employment but they contribute the major
part in the economy of the business. It is a privately owned venture with a less turnover(Rastogi
and Trivedi, 2016).
Characteristic- The main feature of small size business enterprise is that they are
working with a smaller team of the employees or a single individuals. They are working for
lower revenues and also covers the small area that sometimes does not pay any taxes and if they
pay they than there contribution is small.
Example- The Furniture Practice Ltd. Is the small enterprise in UK that provides the
services to the clients for furniture related designers and architects. They work with innovation
and motivates their employees to share the creative ideas so that they earn high profits.
Medium Business

Definition- This type of business is established having an observable track records that
helps in facilitating financial decisions. It refers to that organisation which is well established
with up-to 50 to 250 employees that have an effective observable on financing decisions by
investors and lenders. They may establish their venture in the mature market that is resulted as a
high growth market so that they can work for besting the competition in that area and become a
large enterprise by customer satisfaction. They generally covered the short term cash flows due
to this they cannot face major issues related to the financing as compared to micro and small
business(Hawryszkiewycz and Binsawad, 2016).
Characteristic- Its main feature is that there are more than 50 workers are working for
satisfying the needs of customers and beating the competition within the marketplace. They also
take more risk. They are working for a limited geographical area not on a global basis.
Example- Verdant leisure is the best medium size organisation that is working for
providing the holiday parks with a self catering lodge across Scotland and Northern England.
Large Business
Definition- Large size organisation refers to that which are working with lots of capital
and resources for satisfying the needs of customers by proving innovative products and services
to them. This type of organisation can working in the competitive environment and gaining more
profits for longer sustainability.
Characteristics- The main characteristic of this type of business is that they provides the
large number of employment to the people of society and the range of employees are around
more than 250 workers with a annual turnover of the organisation is 1.5 billion euros.
Example- Tesco is the largest superstore in UK that deals in varieties of products such as
groceries, food, clothing, homewards etc. working with the approximately 321,490 employees in
all over the world and earns a revenues of $ 84,274 millions(Chión, Charles and Morales, 2019).
Section2. Definition, characteristics and examples of sole trader business, partnership limited,
public limited liability and corporative