| Types of businesses | Features of that business |
|---|---|
Different types of Businesses
Private Enterprises:
- Sole traders
- Partnerships
- Private companies
Public enterprises
- Public companies
Government enterprises
Not for profit enterprises
Businesses come in different sizes:
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Micro business: fewer than 5 employees
-
Small business: 5-19 employees
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Medium business: 20-199 employees
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Large business 200 or more employees.
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98% of all businesses in Australia are small to medium enterprises (SMEs).
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These businesses provide employment for about 7 million people.
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SMEs are businesses with fewer than 200 full-times employees and or less than $10 million turnover. SMEs play an important role in the Economy.
Online businesses
- A business which runs some or all of its business through the internet is running an online business.
- Advances in e-commerce and mobile technology such as smartphones causes Australian consumers to expect a website.
On demand businesses
- On-demand businesses use mobile technology such as apps to maximise consumer convenience.
- Consumers are able to get their groceries, food and other items delivered to their doorstep.
- An example of this is Uber Eats and DoorDash.
Global businesses
- Global businesses, commonly referred to as transnational corporation or TNC, is a large company that has branches in many different countries.
- For global businesses, national borders do not represent barriers to trade, they are a line on a map.
- The transnational corporation represents the highest level of involvement in global business.
- Global businesses come in many forms and sizes. Examples include LG, Coca-Cola and McDonalds.
Offshore businesses
- Offshore refers to a location outside of one’s home country.
- In a globalised world, businesses can get many of their functions completed in different countries.
- Often taken advantage of cheaper production costs in a developing country, such as lower wages or less strict environmental regulation which results in significant cost savings for the business.
Government businesses
Government businesses are government owned and operated. They provide essential community services such as:
- Health
- Education
- Roads
- Welfare
Examples in Australia include:
- Australia Post
- Sydney Water
- Sydney Trains
Not for profit businesses
Not-for-profit businesses provide services to the community and does not earn a profit for its owners.
All money earned from donations or running the business must go back into the services the business is providing to the community.
Not-for-profit businesses receive tax concessions, meaning they do not pay as much tax as other types of businesses.
Examples include:
- Charities
- Sporting and recreation clubs
- Community service organisations
- Cultural societies