What is an enterprise business?

From high-street chains to local hotspots, various types of businesses power our consumer experiences. These businesses fall into three categories – micro, SME, and enterprise. In this guide, we’ll define an enterprise, look at an example, and explore the different types of enterprise business in the UK. 

What is an enterprise?

In a business context, an enterprise refers to a large-scale organisation. Enterprise businesses often have multiple locations, departments such as legal or marketing, and increased infrastructure compared to smaller companies.

What is an example of an enterprise business? 

Let’s take a look at Lawsons, a Dojo merchant, to showcase an example of an enterprise business and spotlight some key characteristics that set it apart from smaller-sized businesses.

A substantial workforce: Lawsons employs 740 staff across 38 locations to manage the scope of their operations.

Multiple sales channels: Lawsons sells directly to consumers in their stores or online – these are their business-to-consumer (B2C) operations. They also sell to businesses – their business-to-business (B2B) operations. For example, this could be materials for loft conversions to smaller businesses that provide the service for the end consumer. 

Widespread sales: Lawsons operates nationally, with widespread sales across London and the south east of England. Enterprises can also have a global presence. 

Significant resources: Lawsons has grown to acquire independent businesses in areas like general building, timber, fencing, and landscaping supplies. They have invested in technology to manage the scale of their operations and have roles within the business such as Group Infrastructure Manager.

Diverse products and services: Lawsons offers a wide range of products from fencing supplies and accessories to timber for flooring and cladding. By diversifying their offering, enterprises can enter new markets and access multiple revenue streams. 

It’s important to note that although product diversity and widespread sales are key indicators of an enterprise-sized business, multi-location businesses within a single area, like Maki & Ramen can also be classed as enterprise.

Are there different types of enterprise business in the UK? 

There are four main types of enterprise business within the UK. These are the most common formats:

Sole proprietorship: A business owned and operated by a single individual. These can be trade businesses, like painters and decorators, or online businesses. 

Partnership: A business run by two or more individuals or entities who share ownership.

Corporation: A for-profit entity created to protect the owner(s) from bearing liability in the event of a lawsuit.

Limited liability company (LLC): This type of company combines a corporation's legal protection with a partnership's tax classification. Professional firms such as lawyers, doctors, accountants, and architects are usually LLCs due to their function as a protection for individuals.