Unit 1&2 Research - Tue 8th Oct 2019

Tuesday 8th October 2019

Types of business in the UK.

Investigate and identify the various types of business in the UK, this should include:

·       Sole Traders

·       Limited Companies

·       Partnerships

·       Social Enterprises

·       Charities

·       Unincorporated Associations

Extension task - find examples (preferably creative) for each of the above

Sole Traders

A sole trader is a small private business which is owned by an individual. Sole traders are people that run their own business and are self-employed. Sole traders can keep all their profits after they have paid tax on them. The profits can them be put back into the business or used however the business owner wants. Sole traders are held responsible for any financial or legal trouble the business finds them-selves in and there are certain rules and regulations that small business must follow then it comes to naming and running their business.

-          GOV.UK, (2019), Set up a sole trader, https://www.gov.uk/set-up-sole-trader?step-by-step-nav=37e4c035-b25c-4289-b85c-c6d36d11a763, [08/10/2019]

Limited Companies

There are two types of limited company, Public and Private. Both are owned by an individual or its shareholders.  This means that the profits the business makes are either put back into the business or are split between the shareholders depending on the size of their shares. Having a limited company means that the owners are not held personally responsible for any financial or legal trouble the business gets into.

-          Travel & Tourism year 1, (2018), Unit 2 Assignment 1

Partnership

A Partnership business is a business that is owned by two or more people. A deed of partnership, business contract, is draw up and states they type of partnership how much capital each party has contributed and how profits and losses with be distributed. A partnership business can also have a sleeping partner who is someone that invests in the business by doesn’t contribute to the day to day running of the business.

-          The Arts Development Company, (2019), How to choose the right business model, https://theartsdevelopmentcompany.org.uk/resources/what-is-the-best-business-model-for-my-social-enterprise/, [08/10/2019]

Social Enterprises

Like any business a social enterprise is a business that is looking to make a profit. However, it’s what they do with their profits that sets them apart from other business. Most businesses use profits to further the business, but social enterprises use the profits to encourage change. They do this by reinvesting or donating the profits that they make. By doing this a social enterprise can tackle social problems and help improve people’s life chances, provide training to people that need it as well as employment opportunities. They also support communities and help the environment.

-          Social Enterprise UK, (2019), What is it all about?, https://www.socialenterprise.org.uk/what-is-it-all-about/, [08/10/2019]

Charities

A charity is an organisation set up to provide help or help raise money for those in need. For example; a freelancer that is trying to get more people into writing could set up a charity which offers workshops for young people free of charge. This would be a charity because they are doing it not to make a profit but to help people in the community.

-          Google, (2019), Charities Definition, https://www.google.com/search?ei=3u3LXfybOZDJgQaYs4SYCQ&q=charities+definition&oq=charities+definition&gs_l=psy-ab.3..0i70i249j0i7i30l9.3773.3773..4308...0.4..0.73.73.1......0....1..gws-wiz.......0i71.Vrt1vAfoXgI&ved=0ahUKEwj8gvyyj-flAhWQZMAKHZgZAZMQ4dUDCAs&uact=5&safe=active&ssui=on, [08/10/2019]

Unincorporated Associations

An unincorporated association is an organisation that arises when two or more people come together for a particular purpose but decide they don’t want to use a traditional business model. Most Clubs, societies and groups are unincorporated because they are voluntary organisations. An unincorporated association are a popular choice because they have a greater freedom when it comes to operations compared to a company or a partnership.

-          Net Lawman, (2018), Unincorporated association, https://www.netlawman.co.uk/ia/unincorporated-associations#What%20is%20an%20unincorporated%20association?, [08/10/2019]