Survey of businesses in my local area.

In total there are 14 private limited companies in my area, 20 partnership business organisations and 21 sole trader business organisations. The most common business is the sole trader business because in a residential area people do not need large stores like Marks & Spencer which can be found in town centres instead people need small business where things the consumer needs can be sold and it is easier to provide personal service in an area where people mainly live than work in. it is in cities and areas that are more commercial than residential where large stores like private limited companies can be found.  

Conclusion:

It seems from my research that small businesses intend to use a sole trader organisation e.g. bakeries would be mainly sole traders because the company usually does not need large funding like larger companies would. They would probably need funding if they were to expand but not otherwise.

Partnership organisations are mainly businesses that provide a service only like solicitors, accountants, surgeries and clinics. This is usually because in these businesses you would need a range of expertise for example if working in a solicitor firm the company would need to have someone that is familiar with certain types of cases like murder and someone else would need to specialise in another type like theft. In a partnership it is easier to make the business run more successfully because there is two or more people running the business and each owner has an expertise in different areas so they can help customers with a greater affect and provide a service to more people. This is why businesses that provide a service use a partnership organisation mainly.  

Private Limited Companies mainly are companies that are quite large and need a lot of capital to run the business. A private limited company is usually made up of two people who know each other, such as family or friends. This way there are usually less arguments. Also each person that owns the company buys shares into the company and is given profit deciding on the amount they first invested in. This kind of organisation is usually quite large and is usually a company that is well expanded and has many stores or shops than a sole trader would usually have one property. Companies like builder merchants tend to use this sort of organisation, as it is easy to raise capital that is needed in this sort of business.

Why people choose a sole trader organisation:

People who usually want to start a business usually start from a sole trader and work themselves up if they wish to expand their company. I asked The Pantry my local bakery why they choose a sole trader organisation. The owner told me that they had been in the bakery business since 1981 and had started of then as a sole trader because back then people would usually buy fresh bread from them and also wanted to become a sole trader because they wanted a small business and not a large one because a bigger company would not be able to provide the same benefits as they do now as they know nearly all of their regular customers and can provide a personal service. However the owner of the Pantry told me that because most people these days do not buy fresh bread from them instead go to a local supermarket chain like Asda and Sainsburys they were limited on their profits and so decided to remain a small business.

Why people choose a partnership organisation:

People that choose a partnership organisation usually choose it because it is an organisation that is easier to raise capital in because there is someone else who also helps with capital and also because you can then have a range of expertises. I asked Edward Oueir & Belli accountants why they had chosen to become a partnership and they told me they chose to become a partnership because it was easier to raise capital and also because Edward Oueir was better at auditing accounts and Belli was better at Tax and V.A.T problems so both together with their different expertises they were able to establish a successful accounting firm. Also as they had been friends for a long time there was less arguments over how to run the business.

Why people chose a Private limited company organisation:

People who choose private limited companies usually choose this sort of organisation because they want a large business and also it is a family business or a business that involves your friends as the shares brought into the company are brought only by friends or family as the shares cannot be brought on the stock market. I asked Merril F.J & Son Ltd why they had decided to become a private limited company.  Merril F.J & Son Ltd are builder merchants and they told me they had decided to become a private limited company because that way the family was able to raise capital by selling shares within the family. They told me that they first had started of as sole traders and then later decided to go into a private limited company organisation because that way it would become a family business and also that way all of their relatives could have shares in the business which benefited them and us as it was easier to raise capital.

In conclusion the best type of business that can be set up in my area would be a sole trader business or a partnership. This is because these organisations provide the consumers with their needs and services that are needed where as the private limited companies provide the consumer with wants than needs. However this is not always the case.