Meaning and Characteristics of Each Class of Enterprise

Each size-class of enterprise has its own typical features. Knowing them helps a would-be entrepreneur judge where their planned venture is likely to fall and what to expect from it.

Micro enterprise — the smallest unit, with the lowest investment and turnover. Common examples are a tiny tailoring unit, a small bakery, a repair shop or a home-based food-processing unit.

• Very small capital; usually started and run by one owner or a family.
• Simple technology and mostly manual or semi-mechanised work.
• Highly labour-intensive; provides self-employment and a few local jobs.
• Operates in a small, local market with little formal management structure.

Small enterprise — larger than a micro unit but still modest in size. Examples include a small garment-manufacturing unit, a printing press or an auto-component workshop.

• Moderate investment in plant and machinery; a mix of manual work and machines.
• Owned by an individual, partnership or a small company; a simple management hierarchy begins to appear.
• Serves local and regional markets, sometimes supplying parts to larger firms.
• Employs a larger workforce than a micro unit and shows some division of labour.

Medium enterprise — bigger still, standing between small units and large industry. Examples are a mid-sized food-processing company or an engineering-goods manufacturer.

• Substantial investment and higher turnover; considerable use of machinery and technology.
• Professional or semi-professional management with defined departments.
• Produces on a larger scale for regional or national markets, and may export.

Large enterprise — the biggest units, exceeding the medium limits. Examples are steel plants, large automobile makers and big cement or textile companies.

• Very high investment, advanced technology and automation; capital-intensive.
• Professional management, many departments and often several plants.
• Large workforce, mass production and national or international markets.
• Easier access to capital markets, bank finance and skilled talent. …