This document discusses different ways to measure the size of a business, as there is no single agreed-upon definition. It examines measuring size by number of employees, sales turnover, and capital employed. It also defines market share as a business's total sales as a proportion of the total sales in its industry. Finally, it discusses the importance of small businesses and how governments often support them.

1. Size of business

2.  Tale of two industries
 4 questions
Read pg. 41

3.  Government- assistance
 Investors- compare
 Customers
Measuring business size

4.  A firm might appear large by one measure, but small
by another.
 There is no internationally agreed definition of what a
small, medium or large business is.

5.  Number of employees
 Traditional methods versus automation
 A highly automated computer chip maker
Different measures of size

6.  Sales turnover
 Total value of sales made by a business in a given time
period.
 Precious jewels versus cleaning services
 Calculate market share
Different measures of size

7.  Capital employed
 The total value of all long-term finance invested in the
business.

8.  The total value of a company’s issued shares.
 Stock exchange- public limited companies
 Market capitalisation= current share price x total
number of shares issued
 Not very stable
Market capitalisation

9.  Sales of the business as a proportion of total market
sales.
 Total sales of business
 x 100
 Total sales of industry
Market share

10.  ?????
Other measures that can be used

11.  Absolute size/ comparative size
Which form of measurement is best

12.  Jobs
 Greater choice/ variety
 Competition
 Specialist goods and services
The significance of small and micro-
businesses

13.  All great businesses were small.
 Lower average costs
 Activity 3.1 pg. 44
The significance of small and micro-
businesses

14.  Why do governments help small businesses?
 How do they support them?
 Activity 3.2 pg.46

15.  Internal versus External growth
Business Growth

16. integration