In recent years, business activities have had a breakthrough development, the number of businesses is increasing, and competitiveness is constantly being improved. In establishing an enterprise to serve business activities, investors must choose a business scale appropriate to their actual conditions. So what is scale? What is understood as enterprise scale? We invite you to also follow the article below.
What is scale?
According to the Vietnamese dictionary, scale is understood as size, largeness, smallness, width and narrowness. From there, it can be understood that business scale is the classification of small, medium and large enterprises. Choosing scale before building a business depends on many factors such as: capacity, capital, adaptive environment, experience and skills in operating in the market as well as the choice of the owner. investors in terms of business level and many other influencing factors. This is one of the most important things when establishing a business because it will absolutely affect business activities as well as other activities such as finance or investment.
Determine business size
Based on the size of enterprises that have been operating in the market, there are 03 types of enterprises including: Micro-sized enterprises, small and medium-sized enterprises, and large-scale enterprises. So what are the characteristics of businesses of this respective scale?
2.1 Small-scale enterprise
Currently, the top priority choice for most business owners when starting a business is to build a small-scale business. Because small scale has many compatible advantages when starting a business.
What are the characteristics of scale?
Number of employees: 01 - 50 people.
Easily divide work and assign responsibilities.
Lower-level employees in this scale are independent in their operations and they often do many things at the same time. This requires employees to have high enthusiasm and the ability to adapt well and withstand work pressure.
Business owners need to note that when establishing a business, they must consider how many total members will participate to contribute capital to build the business. From there, choose the appropriate type.
When a business has been operating and stable for a while, the customer base will stabilize and gradually increase over time. Business owners need to clearly assign the tasks they are responsible for to each separate department. Contribute to promoting specialization and improving work performance in businesses.
Increase the number of personnel to meet work needs. The human resources department meets to discuss with the board of directors according to each actual business situation to decide the number of additional personnel that need to be deployed at this time.
What are the appropriate business areas for scale?
Production business activities.
Production of food products: rice, corn, vegetables, fruits, poultry, cattle...
Production of industrial consumer goods such as: ballpoint pens, school notebook paper; household porcelain; clothes; Footwear; rattan; handicraft products…
Activities of buying and selling goods.
Sales agent, materials for production, petroleum, and other consumer goods.
Retail of consumer goods: fruits, candy, clothes...
Internet services for information exploitation and entertainment.
Sell and rent (books, wedding supplies...)
Repair, electronics, motorbikes, cars...
Other services: entertainment, recreation, health care.
2.2 Medium-sized enterprises
The condition to build a medium-sized business is to have a number of employees from: 51 - 1000 people.
Criteria needed to build an average model business
– Average businesses need to establish a clear standard and progress process. Always require subordinates and administrators to have enough experience and qualifications in the position they are holding. At the same time, there must be KPI targets for each specific job position towards the overall potential of the business.
– The starting budget is very high. Includes personnel budget; infrastructure budget, shipping equipment and personnel; machinery jobs; factory. At the same time, how to cooperate with partners to support business development.
– The business owner must be a person with advanced experience in business administration. How to arrange high-performance jobs for human resources departments in the company.
2.3 Large-scale enterprises
The criteria for a large-scale enterprise will be that the number of employees is over 1,000 people. These are often large corporations with strong economic and financial growth foundations.
In the market, there are many businesses in different business fields, so when determining business size, we need to rely on the unique characteristics of each industry and each field. Here's how to determine the size of a large business you can monitor:
– For companies operating in the fields of agriculture, forestry and fisheries: Enterprises considered large-scale need to meet capital sources of over 20 billion VND to 100 billion VND. The number of personnel needs to reach 200 - 300 people.
– For commercial and service businesses: to become large businesses, owners need to meet and ensure that their business has initial investment capital from over 10 billion VND to 50 billion VND. , the number of qualified employees must reach 50 - 100 people
– For companies operating in the field of industry and construction: The investment capital must reach from over 20 billion VND to 100 billion VND, the number of employees also ranges from 200-300 people.
What are the outstanding characteristics of large-scale businesses?
Becoming a large business is the dream of all investors. To realize that dream, you need to learn a lot of information related to this type of business. Don't ignore the characteristics it possesses, the following are the outstanding characteristics of large enterprises:
– Large enterprises account for 5% of the total number of registered enterprises at present. However, this small percentage plays a key role in the country's economic growth. Accordingly, large businesses often build a huge amount of work and will be fully responsible for promoting the economy so that it develops stronger.
- When taking on the role of stabilizing the country's economy, when crises occur, they will of course have to be the ones "standing in charge". So it is imperative that they become strong leaders to overcome those crises together with other members.
– Large businesses always create stability for the economy: This is obvious when most large businesses always create economic success in a uniform and sustainable way, creating business conditions for other businesses. subjects in the economy, ensuring greater stability and limiting sudden changes.
– Most large enterprises often operate in key fields, so they have created an important industrial and service foundation for the country. In the Vietnamese market, we can mention a few big players with key roles such as Oil and Gas Group, Electricity Group, Mineral Group or Coal Group, etc. All of these large enterprises have played a role. contributes a huge amount to the country's GDP.
– In business activities, there are businesses that grow from a very small scale, but there are also businesses that have had very strong financial resources since their formation. Therefore, large businesses with strong financial potential need to quickly contact advances in science and technology in the world, thereby promoting economic growth.
– Currently, large enterprises have strong competitiveness in terms of capital and human resources compared to small and medium enterprises.
– Large businesses often balance production and service activities.
What are the differences between large businesses and small businesses in terms of scale?
Many people may not know that the total number of small businesses accounts for a large proportion while large businesses only account for 5% of the market. One good thing worth mentioning here is that although that number is too small, it is a significant contributor and plays an important role in the development of the market economy.
To become a big business is too difficult. Therefore, those businesses that have overcome that difficult journey will of course have stronger potential than small businesses in all aspects.
There is a special point that we can easily see: large businesses will have much greater competitiveness and pressure tolerance than small and medium-sized businesses. That applies to all aspects from finance, people, experience and achievements,...
Clearly, large enterprises have many advantages over small and medium enterprises. Therefore, if you are in the stage of striving and trying to become a big business, try your best, that is the most effective method for you at this time. You need to learn many things from your competitors to enhance the value of your business.
Thus, when knowing the above information, determining whether your business is large or small is very easy. However, you should learn more about the outstanding characteristics that large businesses often possess to better understand this type of business. It is likely that this will serve your business well in the future.