How to determine the size of the enterprise

One of the most important characteristics for an enterprise is its size, which is determined by the number of employees. The size of the enterprise is directly related to its affiliation with a particular industry. For example, while large and very large organizations are involved in metallurgy and machine building, companies in the food industry are much smaller.

Instruction manual

1

According to Russian standards, companies are divided into small (up to 50 people employed in the enterprise), medium (up to 500 people), large (up to 1000 people) and very large (1000 people employed in the business, and more).

2

Large enterprises usually specialize in the production of large quantities of goods, which helps them in the fight against competitors. Medium-sized enterprises produce products of a narrower purpose and can use the most modern and unique technologies in their activities. The smallest enterprises usually provide services and produce products for the introduction of any innovations.

3

Indicators of the size of the enterprise are simultaneously the criteria for measurement. We can distinguish combined, qualitative and quantitative approaches to determining the scale of a company. A quantitative approach is to determine the annual turnover, the number of employees and to calculate the book value of assets and fixed assets.

4

A qualitative approach in determining the size of an enterprise involves the use of quality criteria. Management systems, performance monitoring systems, employee motivation, etc. are taken into account. However, due to its complexity, this approach is not so often used to determine the scale of the company.

5

As a rule, small companies seek growth, which implies quantitative changes in the volume of the company. However, expanding the activity you need to think about the development, which is to increase the effectiveness of this activity. Without development, it will not be possible to organize the rapid growth of the enterprise.

note

The size of the enterprise can be supplemented by other important characteristics - sales volume, assets, profit, etc.