What Is an Enterprise? Definition and Example

A red question mark in a bubble representing questions about enterprises.

Enterprise is a term that has several definitions. Sometimes, the word “enterprise” is used to refer to any business, project, or initiative.

然而,通常业务描述为一个terprise will have specific characteristics. Enterprises are typically large, complex organizations with various divisions and departments managed by a board of directors or an executive team.

The term can also describe innovative entrepreneurial ventures. You might say that anentrepreneuris “enterprising.”

What is an enterprise?

An enterprise is a large-scale organization with a composite structure. Enterprise companies often have multiple divisions, each with its specialized function. For instance, a multinational corporation may have a marketing department, manufacturing infrastructure, legal team, and resources for launching new projects.

Enterprises tend to produce or sell several products and services, catering to multiple markets. They may selldirectly to consumers, serve other businesses, or both.

“Enterprise” can also refer tostarting a businessor undertaking a venture.

Want more resourcesfor enterprise retailers?Check outShopify’s Enterprise Blog.

What is an example of an enterprise business?

Interior of a Staples store showing a range of products and services as an example of enterprise.

An example of an enterprise retailer isStaples, aShopify Plusmerchant. Staples is a large-scale business with many employees and an extensive product catalog, serving multiple markets worldwide.

While there are no specific criteria for what counts as an enterprise, here are five enterprise-worthy characteristics of Staples’ business:

1. A large workforce

As of 2021, Staples has approximately90,000 employeesacross its operations, an example of the scale of many enterprise companies.

2. Multiple sales channels

Staples serves customers throughbusiness-to-consumer(B2C) andbusiness-to-business(B2B) sales channels. For instance, it sells school supplies and electronics to individual consumers and offers printing and tech maintenance services to businesses. Amultichannel sellingapproach is a hallmark of many enterprise companies.

3. International sales

Staples operates in over 26 countries, with hundreds of stores across continents. A global presence is a common aspect of enterprises.

4. Significant resources

Staples has substantial investments in technology andbrick-and-mortar storefronts(more than1,000 storesin the US alone). It usesinventory managementsystems,ecommerce platforms, andcustomer relationship managementtools to organize its complex infrastructure.

5. Diverse products and services

Staples offers a wide range of products, from office supplies and furniture to gadgets and services like printing and tech maintenance.Diversificationis typical in enterprise business as a way to spread risk and enter new markets.

4 types of enterprise

There are manytypes of businessesin the US that qualify as enterprises. Here are the four most common formats:

1. Sole proprietorship

Asole proprietorshipis a business owned and operated by a single individual. The owner benefits from all profits but bears unlimited liability for any damages and debts resulting from business operations.

2. Partnership

Apartnership是由两个或两个以上经营indiv吗iduals or entities who share ownership. The distribution of ownership does not necessarily have to be equal.

3. Corporation

Acorporationis a for-profit entity designed to protect the owner(s) from liability in case of a lawsuit. The structure of a corporation can vary depending on the number of owners.

4. Limited liability company (LLC)

AnLLCcombines the legal protection of a corporation with the tax treatment of a partnership. LLCs and other limited liability business structures are common with licensed professional firms, such as accountants, architects, engineers, doctors, and lawyers, due to their protections for individuals.

What is enterprise software?

Shopify Plus logo as an example of an enterprise product.

Enterprise software, products, and services are designed to support the growth and success of enterprises. They may perform a single task associated with running a business or offer multiple back-office solutions within a single platform.

Most enterprise products are engineered to handle the high volume of traffic, orders, and information that an enterprise company receives.

Due to their size and complexity, enterprises often require bespoke software solutions that integrate with existing services. That’s why Shopify allows retail businesses tochoose their commerce components.

Unify your sales channels with Shopify

Only Shopify unifies your sales channels and gives you all the tools you need to manage your business, market to customers, and sell everywhere in one place.

No matter the combination of products, Shopify enterprise stores always get theworld’s best-converting checkout.

Enter: Big business

While “enterprise” can refer to any business or entrepreneur, it’s most commonly used to describe large companies with multiple services and complex needs. Discover why the world’s biggest enterprise brandschoose Shopify Plusto grow across marketplaces, mobile, social, and real life.


Enterprise FAQ

What is an enterprise in a business?

Enterprise in a business context refers to an organization, typically a corporation, involved in commercial, industrial, or professional activities. It comprises multiple entities, such as divisions, departments, and subsidiaries, and is managed by a board of directors or an executive leadership team.

What is the difference between an enterprise and a business?

The terms “enterprise” and “business” are often used interchangeably, but they do have distinct nuances. A business typically has a specified objective and focuses on producing or selling products and services.

On the other hand, an enterprise is a broader operation encompassing production, labor, sales, and a business’s organization, management, and growth. While all enterprises are forms of business, not all businesses are enterprises.

What is the difference between an enterprise and a small business?

The primary difference between an enterprise and a small business lies in their scale and complexity. An enterprise is a large-scale organization engaged in commercial activities, often involving a complex network of operations, departments, and divisions. In contrast, a small business is an individual or small team engaged in commerce, usually operating as a single unit. Enterprises generally have more resources, capital, and personnel than a small business and tend to face higher risk factors due to their scale and complexity.