Business size and Growth

• What are the three categories of enterprises based on size?

  Small, medium, and large enterprises
• How is the size of a business measured?

  By number of employees and turnover
• What factors affect the size of a business?

  Employees, factories, turnover, market value, capital
• Why is it important to consider business size for stakeholders?

  It impacts financial and operational decisions
• What are the main functions of a business?

  • Accounting & Finance
  • Operations Management & Production
  • Marketing & Support Services
  • Human Resource Management
• What does the Accounting & Finance function monitor?

  Financial resources and detailed records
• What is the role of Operations Management?

  Designing and controlling production processes
• What does Marketing & Support Services conduct?

  Market research to identify consumer needs
• What is the responsibility of Human Resource Management?

  Wellbeing of employees and recruitment
• How does the size of a business affect its functions?

  It determines the finances of each function
• What is the EU's standard for measuring business size?

  Based on employees and turnover
• What is the employee limit for a medium enterprise?

  Less than 250 employees
• What is the turnover limit for a small enterprise?

  Less than €10 million
• Why might the number of employees not accurately reflect business size?

  Automation can reduce employee numbers
• What is the turnover threshold for a micro enterprise?

  Less than €2 million
• How does the number of factories affect business size perception?

  More locations indicate a larger business
• What does turnover represent in a business?

  The value of a business's sales
• Why is stock market value a misleading measure of business size?

  Share price fluctuations can misrepresent size
• How is capital employed defined?

  Total value of a business's assets
• What geographical factor affects asset value?

  Location, such as London & South East
• What is a limitation of measuring market size?

  Small markets often have small businesses
• How does the nature of the product influence business size?

  Complex products require larger resources
• Why might an entrepreneur avoid expansion?

  Fear of losing control over the business
• What can limit a small business's ability to expand?

  Lack of available funds for expansion
• How did the financial crash affect small businesses' expansion?

  Banks became reluctant to lend funds