BUSINESS TIME @bekky Series3 : ENTERPRISE :::FORMS AND CLASSIFICATIONS OF ENTERPRISES

Hello everyone, its another bright Monday and its time for another series of #businesstime with @bekky...I am welcoming you to this yet another series

Last time, I wrote on the topic "ENTREPRENUERSHIP : DEFINITION AND CHARACTERISTICS", should incase you missed it, you can read it here

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**ENTERPRISES**

From my last post, you have learnt what enterpreneurship and who an enterprenuer is ,
today's topic will be a kind of extension to the previous one.

Since "entrepreneurship is the ability of any individual to identify business opportunities and to bring together all necessary resources and an entrepreneur is one with an ability of identifing opportunity where others see nothing and also being able to bring together necessary reaources to change the ideas into real business

Therefore, Enterprise according to Manu, Nelson and Thiongo (2005) is

any identified idea that is translated into a planned and satisfactorily implemented activity"

Enterprises can also be referred to as all projects and undertakings by man if criteria implied in the above definition has - identified idea, plan, implementation, successful completion of activity and also reward acceptance

All types of projects or undertakings both profit oriented and non-profit oriented are all encompassed in Enterprises

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FORMS OF ENTERPRISE
I will be emphasising on the narrower perspective of enterprises.

As noted above, we have the profit oriented and non-profit oriented enterprise/business , these enterprises are in existence because of societal needs and multiplicity of those needs which necessitates all the forms of enterprises.

As an Entreprenuer, these are the forms of enterprises we can start with :

• Micro Enterprises

• Small-scale Enterprises

• Medium Enterprises

• Large Enterprises

• Micro Enterprises : Micro Enterprise can be said to be those businesses too small to referred to as small-scale enterprises.
  Micro Enterprises have the following features:

  • small amounts of capital investment
  • inability to afford some business infrastructures and facilities such as : plant and factory equipment, hiring more than one person (if need be), capital investment more than #250, 000 ($)
  • single owner with no or fewer employees and
  • unregistered business name

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• Small-scale Enterprises : These type of enterprises are limited in their scopes of operation generally, which may constitute - capital employed, annual turnover, number of employees, and others such as deep involvement of owner with management, limited scope of operations.

Things you need to know about small scale enterprise are :

• almost half (50%) of small scale enterprises fail in first two years
• they take the highest share of employees in retailing, wholesaling and services
• it is the natural home of entrepeneurship almost in all countries
• approximately 75% of new jobs are generated by small scale enterprises
• over 40% of business employees in most countries are employed in small scale enterprises

Amongst others are the surviving chances of new businesses not more than five years is between one to four, poor management being the main cause of failure of small scale businesses, job creation cost through small scale enterprises is small fraction of what it takes in lage enterprises.

• Medium Enterprises : These form of enterprises can neither be categorised as being a small or a large scale businesses because they neither small nor big enough to be called any.
  The capital investment, annual turnover and employment are such that can also neither be placed as being a small nor a large business.

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• Large Scale Enterprises : Thses are businesses that has their operation beyond what the small or medium enterprises can afford. Their level of operation is large enough to involve;
  • huge capital investment
  • large number of employees
  • equipment and plant are big and sophisticated
  • market share is reasonable / annual turnover is large

NOTE that small scale enterprises can metamorphosised into medium and also medium into large ones

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CLASSIFICATION OF ENTERPRISES
Enterpeises can be classified to be either of the following:

• Private or Public

• Local or International

• Individual or Community

• Profit oriented or Non-profit oriented

• Small or Large

• Business or Social

• Manufacturing or Service

• Consumer or Industrial

• Formal or Informal

This where I will be dropping my pen this week, I hope you have learnt something from this... feel free to drop any points you feel is missing, because I stand to be corrected and I am still learning too...no one is an Island of knowledge.

JOIN ME NEXT TIME NEXT WEEK ON #businesstime with @bekky AS I WILL BE TAKING US THROUGH "HOW TO GENERATE AND EVALUATE BUSINESS IDEAS"

Thanks for checking my blog out today!!!