Size - number of employees or owners and its legal structure
Geographic spread - presence and range within an area
Industry - grouped based on industry
Primary - production directly associated with natural resources e.g. farming, fishing and mining.
Secondary - Take output of firms in primary sector - finishing or semi-finishing the product e.g. steel/car manufacturers.
Tertiary - Provide services e.g. banks, dentists and solicitors.
Quaternary - provides services involving transfer and processing information e.g. computing, finance and education.
Quinary - Provides services that have been performed in the home e.g. hospitality and childcare.
Unincorporated: sole traders and partnerships
Incorporated: private and public companies
Unincorporated businesses have taken on a life of its own - most common legal structure, easiest and cheapest
Incorporated business have a separate legal entity - the business continues to operate regardless of the individual owners (shareholders) of the company.
simple not to costly no disputes with partner
personal liability burden of management
Perform wide variety of tasks
Advantages low start-up costs shared responsibility and workload no taxes on profits
personal limited liability disputes are a possibility difficulty finding loyal partner and divided authority
2-50 shareholders (PTY LTD)
Large in size and market
Limited or LTD in its name
At least on shareholder
Owned and operated by government - (GBE’s) -Government Business Enterprises
Small in number (5000)
Owned operated by all levels of government - federal, state and local
Process of transferring ownership of government business to private sector
Organisations change their legal structure from GBE to public company - due to process of privatisation
Influences on Businesses:
External Influences: factors which business has little control of
Economic Influences: economic cycles - boom and bust
Financial Influences: changes in markets global financial markets undergone rapid change developments in communications
Geographical Influences: geographic location economic growth changing demographic factors - age, sex, population, background and family - population baby boomers, requiring more aged care facilities
Social Influences: change in fashion and culture