Types of companies: their characteristics and areas of work

Society and the market today are full of organizations forged with the aim of providing goods and services to the people. These organizations, companies, have big differences between them.

That is why they can be established classifications to distinguish between different types of businesses from different criteria, as we will see throughout this article.

    Company: a simple description

    It is understood as a business any organization that offers a range of products and services, Generally for economic and / or commercial purposes, to those who request their services. That is why they require a certain structure and resources to maintain it, which can be obtained in different ways.

    There are many types of businesses that we can organize according to various criteria. Some of these criteria are the type of activity they exercise, the origin of the economic resources necessary for them to exercise their activity, in which territorial sphere they operate, their legal constitution or even their size.

      1. Type of business according to economic sector

      A type of business classification this is the economic sector and the group of activities they perform.

      1.1. Primary sector companies

      It is these organizations that base their economic activity on the collection of raw materials, which enable the subsistence and further processing of these materials. They are essential enterprises without which the existence of the other two sectors would not be possible. In this sector we find activities such as agriculture, animal husbandry, fishing and mining.

      1.2. Secondary sector companies

      Companies in the secondary sector are in charge of the transformation of raw materials, transforming them into various goods ready for consumption. In this sector are included activities such as construction and industry, Both in terms of manufacturing and energy transformation.

      1.3. Tertiary sector companies

      The tertiary sector is based on all the activities linked to the creation and management of services guaranteeing the well-being of the population. In Western societies today, they are generally the most common types of businesses in the big city. Within this group we can find companies dedicated to medicine, education, psychology, commerce, tourism and hospitality, social assistance, transport, security, administration or the arts, for example.

      2. According to resource control

      Another way to classify businesses is according to the origin of the resources they own. In this sense, we find the following types of companies.

      2.1. Public enterprises

      These are the types of businesses that we find managed by public administration.

      2.2. private companies

      In private companies, economic resources they come from particular individuals.

      2.3. joint ventures

      These organizations are managed by generally private bodies, although they are subordinate and partially subsidized by the administration.

      3. According to the territorial sphere in which they operate

      The location where a business operates can also be a criterion when classifying businesses. We can find the following types.

      3.1. Local company

      It is one of the most common types of business, which it limits its field of action to a single locality, Like a city or a village. For example, a butcher’s shop.

      3.2. regional company

      Its scope is limited to a specific region, such as for example an autonomous community.

      3.3. national company

      The company in question pnot to act in a whole nation.

      3.4. multinational company

      The company offers its services in more than one country, with a expand their business opportunities, Although this also involves a larger investment.

      4. In accordance with its legal constitution

      Depending on the legal constitution of the company in question, we can find the following types of companies.

      4.1. societal

      It is the type of business that involves the development of a business, that is to say that involves the association of several persons bound by contract. They involve the creation of a legal person different from that of the different members that make it up. Within corporate companies, we can distinguish different types of companies such as joint stock companies, cooperatives or limited liability companies.

      4.2. Self employed

      These are companies made by one person, Which assumes full responsibility and uses its own resources to face the opening and maintenance of its activity.

      5. Depending on the size of the organization

      The size of the company, depending on the number of employees, existing capital and turnover volume, also allows us to establish three types of companies.

      5.1. small business

      A small business is understood to mean a business in which the number of workers does not exceed fifty, invoices of less than ten million euros per year and whose property owned does not exceed this amount. These are usually small businesses or companies limited to a specific locality.

      5.2. medium business

      The average company generally has between fifty and two hundred and fifty workers, invoicing less than fifty million euros and have total assets of less than forty-three million. Regional companies and even some national ones are generally part of this consideration.

      5.3. good company

      Multinationals are generally part of this group. These are companies with a turnover of over fifty million and total assets greater than forty-three. They generally have more than two hundred and fifty employees.

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