Size of Business

Problems In Measuring Business Size

• A firm might appear large by one measure but quite small by another.
• No internationally agreed definition of what a small, medium or large
business (employees)
 Different Measures Of Size
• Number of employees:
• Revenue: (total value of sales made by a business in a given time period)
• Capital employed: the total value of all long-term finance invested in the
business.
• Market capitalisation: the total value of a company’s issued shares. Used
only for companies who have shares quoted in the stock exchange
• Market share: sales of the business as a proportion of total market sales
• Other measures: (Floor space, Number of beds, number of stores etc)
Best form of measurement
Advisable to test a firm on at least two criteria's and to make
comparisons on the basis of these.
 Micro Finance
• employs few people and will have a low turnover compared to other
firms.
significance of small and micro-businesse
Government assistance for small businesse
• Reduced rate of profits tax (c
• oan guarantee scheme
• Support Services