Company classification: a size and sector perspective
Posted: Mon Dec 09, 2024 5:58 am
The global economy is made up of a diverse and dense network of companies, each unique in its own way. However, company classification allows us to group them into more general categories, thus facilitating the analysis and understanding of the business environment. In this sense, the two main dimensions used to classify companies are size and sector of activity.
Classification by size and sector
The classification by size is probably the most intuitive and is also one of the most used in economic and administrative sciences. In general terms, companies can be divided into gambling data brazil micro, small, medium and large companies. Micro companies are those with up to 10 employees and an annual balance sheet of less than 2 million euros. Small companies are those with between 10 and 50 employees, and an annual balance sheet of no more than 10 million euros. Medium companies are those with between 50 and 250 employees and an annual balance sheet of less than 50 million euros. Finally, large companies are those with more than 250 employees and which generally exceed 50 million euros in annual balance sheet.
The sector of activity is also a relevant criterion for classifying companies. According to the Mexican Ministry of Economy, the main categories are industrial companies, construction companies, commercial companies and service companies. Industrial companies are involved in the process of transforming raw materials into finished products. Commercial companies are those dedicated to the purchase and sale of products without altering their form. Construction companies are those that carry out the construction of buildings. Finally, service companies are those that provide a service without producing material goods.
More classifications
Geographical scope
Depending on their geographic scope, we can distinguish between local, island, regional, national and multinational companies. Local companies operate in a specific municipality, while island companies are located on islands. Regional companies operate in a wider region or geographic area, while national companies cover an entire country. Finally, multinational companies have a presence in multiple countries.
A businesswoman analyzing data from various companies to understand the global environment.
Every company is unique, however, classifying them helps to better understand the global market to achieve business success.
Family character
Family character is also a relevant classification. A business is considered family-owned if the majority of its ownership is held by one or more families and some family members are also involved in managing the business. Managing a family business can present unique challenges, as family and ownership goals must be considered in addition to long-term business interests.
Ownership
Ownership is also an important factor in classifying companies. Private companies are 100% owned by individuals, while public companies are owned by public administrations such as the government or an autonomous community. Mixed companies are those that combine both public and private ownership.
Legal form
Finally, the legal form of a business can also vary. Some common types include the sole proprietorship, partnership, joint stock company, and limited liability company. Each of these legal forms has specific characteristics and requirements, and are suitable for different business sizes and structures.
Continue your professional training
Discover the Master's Degree in Strategic Management of Family Businesses at FUNIBER , where you will acquire the knowledge and skills necessary to face the challenges of family businesses. With a complete curriculum and expert teachers in the field, you will be able to immediately apply your knowledge in your work environment and contribute to the growth and success of your family business.
Classification by size and sector
The classification by size is probably the most intuitive and is also one of the most used in economic and administrative sciences. In general terms, companies can be divided into gambling data brazil micro, small, medium and large companies. Micro companies are those with up to 10 employees and an annual balance sheet of less than 2 million euros. Small companies are those with between 10 and 50 employees, and an annual balance sheet of no more than 10 million euros. Medium companies are those with between 50 and 250 employees and an annual balance sheet of less than 50 million euros. Finally, large companies are those with more than 250 employees and which generally exceed 50 million euros in annual balance sheet.
The sector of activity is also a relevant criterion for classifying companies. According to the Mexican Ministry of Economy, the main categories are industrial companies, construction companies, commercial companies and service companies. Industrial companies are involved in the process of transforming raw materials into finished products. Commercial companies are those dedicated to the purchase and sale of products without altering their form. Construction companies are those that carry out the construction of buildings. Finally, service companies are those that provide a service without producing material goods.
More classifications
Geographical scope
Depending on their geographic scope, we can distinguish between local, island, regional, national and multinational companies. Local companies operate in a specific municipality, while island companies are located on islands. Regional companies operate in a wider region or geographic area, while national companies cover an entire country. Finally, multinational companies have a presence in multiple countries.
A businesswoman analyzing data from various companies to understand the global environment.
Every company is unique, however, classifying them helps to better understand the global market to achieve business success.
Family character
Family character is also a relevant classification. A business is considered family-owned if the majority of its ownership is held by one or more families and some family members are also involved in managing the business. Managing a family business can present unique challenges, as family and ownership goals must be considered in addition to long-term business interests.
Ownership
Ownership is also an important factor in classifying companies. Private companies are 100% owned by individuals, while public companies are owned by public administrations such as the government or an autonomous community. Mixed companies are those that combine both public and private ownership.
Legal form
Finally, the legal form of a business can also vary. Some common types include the sole proprietorship, partnership, joint stock company, and limited liability company. Each of these legal forms has specific characteristics and requirements, and are suitable for different business sizes and structures.
Continue your professional training
Discover the Master's Degree in Strategic Management of Family Businesses at FUNIBER , where you will acquire the knowledge and skills necessary to face the challenges of family businesses. With a complete curriculum and expert teachers in the field, you will be able to immediately apply your knowledge in your work environment and contribute to the growth and success of your family business.