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Business Terminology

BUSINESS TERMINOLOGY, SCALE.

ESTABLISHMENT (small/craft) An establishment is a single physical location where business is conducted or where services or industrial operations are performed.

FIRM (regional/industry): A firm is a business organization consisting of one or more domestic establishments in the same state and industry under common ownership or control.

ENTERPRISE(National/Federation) An enterprise is a business organization consisting of one or more domestic establishments under common ownership or control.

–VS–

SIZE
Very small businesses Fewer than 20 employees
Small businesses 20 to 99 employees
Medium businesses 100 to 499 employees
Large businesses 500 or more employees

THEREFORE THIS GRAPH
…………………Establishment -> Firm -> Enterprise
Large >500
^
Medium >100
^
Small >20
^
Very Small >0

WHAT DOES IT LOOK LIKE?
It looks like half of the people are employed by LARGE organizations, the majority of the rest by Small and very small.
I look at it like this:

Given Median Family Income: 50K:

500*50K=25M * 4 = 100M+
100*50K=5M * 4 = 20M+
20*50K=1M * 4 = ~5M+
1*50K=50K * 4 = 200K+

WHY?
Revenue per employee goes up with scale.
Ratio of employee to equipment costs balances out.
As an average we tend to use 30%. (Since I’ve largely been in technology, I have never run a business where it is that low).
If we use the median income, and multiply by four that seems to produce a fairly good “rule of thumb”.

WHATS THE HIGHEST PAID OCCUPATION IN AMERICA?
Management of companies and enterprises . . ..104,041
..Enterprises with fewer than 500 employees . . . 76,484
..Very small enterprises . . . . . . . . . . . . . . . . . . . 155,557
..Small enterprises . . . . . . . . . . . . . . . . . . . .. . . . 70,065
..Medium enterprises . . . . . . . . . . . . . . . . .. . . . . 74,717
..Large enterprises . . . . . . . . . . . . . . . . . . .. . . . 108,057

The organization of production distribution and trade is the highest paying sector in america. Entrepreneurship rules.

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