what is small medium enterprise
Small and medium enterprises or SMEs are companies whose headcount or
turnover falls below certain limits.
The abbreviation SME occurs commonly in the EU and in international
organizations, such as the World Bank, the United Nations and the WTO. The
term Small or Medium sized Business or SMB has become more standard in a few
other countries.
EU Member States traditionally had their own definition of what constitutes
an SME, for example the traditional definition in Germany had a limit of 500
employees, while, for example, in Belgium it could have been 100. But now
the EU has started to standardize the concept. Its current definition
categorizes companies with fewer than 50 employees as "small", and those
with fewer than 250 as "medium".[1] By contrast, in the United States, when
small business is defined by the number of employees, it often refers to
those with less than 100 employees, while medium-sized business often refers
to those with less than 500 employees. However, the most widely used
American definition of micro-business by the number of employees is the same
of that of European Union: less than 10 employees.
As of 2005, Germany will use the definition of the European Commission.
Business enterprises of fewer than 10 employees often class as SOHO (for
Small office/home office).
In most economies, smaller enterprises are much greater in number. In the EU,
SMEs comprise approximately 99% of all firms and employ between them about
65 million people. In many sectors, SMEs are also responsible for driving
innovation and competition.
Providing SME finance and support is thus an important area of economic
policy.
From:
Wikipedia
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SMALL
MEDIUM ENTERPRISE