Learn English – When do we use ‘enterprise’ to mean ‘company’

meaning

What is the difference between a company and an enterprise? The cambridge dictionary defines an enterprise as 'a business', and gives an example, 'a commercial enterprise', Oxford defines it, among other things as 'a business or company', and gives the example of a state-owned enterprise, the EU provides money for 'Small and medium-sized enterprises' (= businesses), yet we would not say: 'my father has set up an enterprise making chocolate bars' or 'the enterprise where I work employs 3 people'. If you look up 'enterprise' on google images, you get pages of space ships, a few aircraft carriers and a car rental firm, if you google image 'company', you get, well, companies.

I am not referring here to the other meanings of enterprise: entrepreneurial activity/ initiative and resourcefulness, but just to 'enterprise' (countable), used as a near synonym for 'company'.

Best Answer

The following extract helps understand the main differences. Entreprise has a wider definition which actually contains that of a Company:

Company

  • Any business that is conducted with the aim of generating profits is referred to as a company. If there is an economic activity is going on, one can be pretty sure that the outfit carrying it is a company. In general, the word company indicates an organization that engages in activities geared towards earning profits for the stakeholders.

Enterprise

  • An enterprise has several meanings of which one is definitely what is understood by a company. So a business organization is definitely an enterprise according to the dictionary meaning of enterprise. However, a person is also referred to as enterprising when he is seen as one who is willing to take risks to start new ventures. Private enterprise is what is meant by industriousness that is directed towards earning profits. Enterprise class is a phrase that has become common these days, and it refers to a solution or a device meant for use in a large organization. Enterprise seems to be a preferred choice when talking about IT companies as when we hear about enterprise architecture, enterprise security, and so on. ‘Small and medium enterprises’ (SME) is a very common phrase used for small ventures and units in comparison to large companies in an economy.

What is the difference between Enterprise and Company?

  • While a company is typically an organization engaged in an economic activity for the purpose of earning profits for the stakeholders, an enterprise may not be a formal company in many instances.

  • There are educational and community enterprises that do not fit into the definition of a company as they are not set up for the sole purpose of making profits.

  • Enterprise is a word that can be used for a company though it is mostly used in the sense of action and growth as in private enterprise.

  • Enterprise has become common in the context of IT these days with enterprise class and enterprise solutions being commonly used phrases.

  • SME is an acronym that clearly indicates that enterprise is meant to be used for ventures.

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