What is an enterprise? Definition and examples

“Enterprise” is a term we hear a lot in the business world, but what exactly makes a company an enterprise?

What is an enterprise company?

The definition of an enterprise is not cut-and-dried. Many explanations are actually quite broad and, in some cases, even vague. For example, Tim Uittenbroek, founder of VPNMash, says that an enterprise describes the action of someone who has taken the initiative to run a business. He defines it as “a legal entity possessing the right to do business on its own.”

Alan Pelz-Sharpe, founder of Deep Analysis, confirms that there are lots of definitions of “enterprise,” many of which conflict with one another. Based on his expertise, he loosely defines an enterprise as a “for-profit company with huge revenue.” He says enterprises are neither medium-sized businesses nor small businesses, but rather very large ones.

Of course, that raises questions about what’s considered “huge” revenue and what exactly makes a company large in the first place. This is where things get a little murky.

Characteristics of an enterprise

While there isn’t a universal definition for what makes a company an enterprise, enterprises generally have the following traits:

• Large workforce

The size of the workforce refers to the number of employees the company has. According to Maksym Babych, CEO of SpdLoad, “In the U.S. there are no clear rules on what to define as an enterprise. However, the E.U. defines enterprise level as more than 250 employees.”

• Large amount of revenue

Enterprises generally have an annual revenue ranging from $10 million at the low end to $1 billion or more. However, there is no set revenue criteria or cutoff number.

• Focus on scale

The late Charles Edge, former director at JAMF Software, says there is also more emphasis on scaling operations well when a company is at the enterprise level. “This means that more diligence is often taken to plan and prepare,” he says, “so you want to be much more deliberate than you might be in a small business.”

• Wide range of goods and services

Enterprises usually will find ways to extend their reach into different markets. For example, Google has extended its product range beyond just a search engine to also include phones, an internet browser, ad services, file storage, and more.

What are the different types of enterprise companies?

• A public limited company (or publicly traded company)

A public limited company, as it’s known in the UK, refers to an enterprise that sells company shares to the public. This provides shareholders some ownership of the company, giving them a say in company decisions.

“Going public” has its pros and cons, but many companies choose to go public for the opportunity to raise capital.

The equivalent of a public limited company in the United States is a publicly traded company.

Examples: Microsoft, Ford, Coca-Cola

• Private limited company

Put simply, a private limited company is an enterprise company under private ownership. While a private limited company is still owned by shareholders, those shares are not  available for purchase on public stock exchanges. Instead, a shareholder has to be invited to invest in the company — for example, through a venture capital firm.

Executives of a retail company might want to keep the company private to maintain control of decision making. An executive would have to approve of new shareholders if they’re outside of the company.

Examples: IKEA, Cargill, Mars

• Partnership

A partnership is a joint business of two or more parties who split the profits and share losses, allowing companies to combine their resources.

There are three main types of partnerships: general partnerships, limited liability partnerships, and limited partnerships.

General partners provide capital and have a say in operations and decisions, while limited partners generally just provide capital.

Meanwhile, limited liability partners have a degree of responsibility for business management as well as some liability. However, a partner is not responsible for the actions of another (e.g. if one partner is being sued for malpractice).

Examples: Ernst & Young (EY), McKinsey & Company, many law firms

• Sole proprietorship

A sole proprietorship is a business owned and run by just one person. Only the owner pays income tax on the company’s profits. Several large companies like Sears and J.C. Penney actually started off this way.

Since a sole proprietorship only has one owner, filing taxes and other processes are much simpler. For example, these companies generally don’t need to register with their state, and they can get more tax benefits. Tax filing is also easier because the owner can simply use their personal Social Security number.

However, this also means owners open themselves up to being personally liable for the business’s debts.

Examples: Amazon and Dell in their early years

Examples of enterprises

Taking a look at an enterprise in the real world can make the concept more tangible. While there’s no rigid checklist, most enterprises are large-scale, for-profit companies with high revenues, hundreds (or thousands) of employees, and wide operational footprints. Here are some examples across different industries:

• Technology

Large tech companies often operate globally, serving both consumers and businesses. These enterprises typically offer a wide range of services or products, from software to cloud infrastructure.
Examples: A cloud services provider with millions of users, a multinational software development company, an enterprise IT consulting firm

• Retail and e-commerce

Retail enterprises may have brick-and-mortar stores, e-commerce platforms, and complex logistics networks to serve broad markets.
Examples: A department store chain with thousands of employees or a global online retailer that sells across regions and manages a massive supply chain

• Healthcare

Enterprise-level healthcare organizations include large hospital systems, pharmaceutical manufacturers, and insurance providers. They require robust systems to manage patient data, research, compliance, and operations.
Examples: A regional healthcare provider operating multiple hospitals or a global pharmaceutical company producing and distributing medicine worldwide

• Finance and banking

Financial enterprises must handle large transaction volumes, adhere to strict regulatory requirements, and serve millions of customers.
Examples: A multinational investment bank, a credit card company, a national insurance provider

• Manufacturing and industry

These companies typically have large facilities and global supply chains that require enterprise software for inventory, logistics, and compliance management.
Examples: An automobile manufacturer, an aerospace company, an electronics producer with factories in several countries

• Telecommunications

Telecom enterprises manage vast networks of infrastructure and serve millions of users. Their operations often reach beyond national borders and involve extensive regulatory oversight.
Examples: A mobile network provider or a broadband internet service provider operating in multiple countries

For more information, check out our detailed guide on enterprises.

Qualities of a successful entrepreneur

Behind every successful enterprise is an entrepreneur — or team of entrepreneurs — who turned an idea into a scalable, thriving business. Whether launching a startup or growing a multinational corporation, successful entrepreneurs tend to share six key qualities:

1. Vision

Entrepreneurs see beyond the present moment, identifying market needs, long-term trends, and growth opportunities. A clear vision helps steer the company, attract investment, and build customer trust.

2. Resilience

Enterprise-level success rarely happens without setbacks. Great entrepreneurs bounce back from failure, learning quickly and adapting to new challenges.

3. Risk tolerance

Starting and scaling a business involves uncertainty. Successful entrepreneurs take calculated risks and make tough decisions under pressure.

4. Strategic thinking

Entrepreneurs need to balance big-picture strategy with day-to-day operations. They focus on what matters most: sustainable growth, operational efficiency, and customer satisfaction.

5. Leadership

As companies scale, leading a team becomes essential. Strong entrepreneurs know how to motivate people, delegate tasks, and build a culture that supports innovation.

6. Customer focus

Even at the enterprise level, customer needs remain a business’s North Star. Entrepreneurs who succeed long-term stay close to their customers and continuously improve based on feedback.

What is enterprise software?

Enterprise software refers to a category of powerful, scalable digital tools designed specifically to help large organizations manage complex business operations, internal workflows, and massive datasets efficiently. These systems are not used by just one department or a single team — instead, they serve as centralized platforms that connect various functions across the enterprise, such as human resources, finance, sales, procurement, logistics, and customer service.

Unlike consumer-facing apps or small-business tools, enterprise software is engineered for high performance and customization at scale. It must handle large volumes of users, transactions, and data in real time, often across multiple locations or even countries. These systems also support advanced features like role-based access control, compliance with industry regulations, multi-layer security protocols, and integration with legacy systems or third-party platforms.

In short, enterprise software acts as the digital backbone of a large business, enabling better decision-making, increased operational visibility, and improved productivity. By automating tasks and consolidating data, they ensure that different teams can still work from a unified source of truth.