Types of Business Enterprises and Organizational Structures

REPORT

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Definition, characteristics and examples of micro business, small business, medium size business and
large size business...................................................................................................................................3
Definition, characteristics and example of sole trader business, partnership, limited liability business,
public limited liability business and Cooperative....................................................................................5
Identify different organisational structures and explain how organisational structure affects business
productivity.............................................................................................................................................7
Using PESTLE analysis explain how different external factors affect the performance of a business.....8
CONCLUSION.........................................................................................................................................10
REFRENCES............................................................................................................................................11

INTRODUCTION
The proposed report provides a detailed examination and assessment of various forms and types
of business enterprises. It highlights upon the role of different types of organisation stricture in
elevating the productivity of business firms. In addition to that, a detailed discussion of Pestle
Model is also facilitated within the report.
MAIN BODY
Definition, characteristics and examples of micro business, small business, medium size business
and large size business
Micro scale business
Micro business can be defined as a business firm that operates at a very minor scale. The
operations facilitated within the micro business are very have very restricted reach and the
services provided by the same are also very limited (Cappellino, 2020).Micro businesses tend to
have less than 10 employees within the respective firm.
 The capital investment in micro business is very low
 The profit margin acquired by the micro businesses is very less as compared to other
business scales in the market.
Some of the examples of Micro business are agriculture, construction, vendors etc.
Small scale business
Small business enterprises can be defined as firms with a single owner, restricted capital, less
labour requirements. The market reach of small business is narrow but they are categorised as an
asset to the global economy.
 In small businesses, the owner is responsible for handling the operations and managerial
activities of the firm.
 The respective businesses heavily depend upon their labour operations. The workforce of
small business is less than 50 staff members ( Baum. and Haveman, 2020).

 The role and optimisation of technology within small business is extremely little as
compared to other forms of businesses within the market.
For instance, coffee shops, cafes, vehicle garage, electrical services etc. are some of the
examples of small scale business firms.
Medium scale business
A medium scale business is a form of business that has adequate capital and workforce in order
to lead the business practises within the market. The customer reach of medium scale business is
wider than small business.
 The medium business have nearly less than 250 employee workforce within their
organisational setting.
 The profit and market acquisition of the concerned business is sufficiently adequate as
well (Webber and Dunbar, 2020 ).
 Medium scale enterprises have further scope for development and expansion within the
market.
Few of the examples of medium business are furniture companies, retail stores, technology based
firms etc.
Large scale business
Large-scale businesses are incredibly popular within the market domain. The large scale firms
operate at a very wide scale and require huge capital investment (Khurana, et.al, 2020).The profit
generation of large-scale business enterprises is highly optimum and satisfactory as well.
 Systematic and organised hierarchy is adopted by large-scale enterprises in order to
manage their work operations.
 The human capital requirement of such businesses is more than 500 staff members.
 The scope for growth and development of large businesses is very high.
 These business enterprises have strong business networks, skilled and trained workforce,
reliable partners and investors etc. within their business environment.
For example, Tesco, Zara, Tesla, Audi, Apple etc. are few of the large business firms.