SME - Term Overview

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Sme is the abbreviation for "small and medium enterprises". They are those companies whose volume of business and income and workers isn't usually very large compared to other companies.

The concept of "SME" itself is designated to speak of small and medium-sized enterprises and the plural can be used to speak of all of them. Likewise, it not only includes these companies, but also micro-companies, which have been designated within this category.

According to a specialized portal, the classification made of SMEs is based on the number of workers and the volume of business. We can distinguish 3 types of SME: micro, small and medium-sized companies.

  • The microenterprise: It's a company that has less than 10 employees and a business volume of less than 2 million dollars.
  • The small business: It has less than 50 employees and a turnover of less than 10 million dollars.
  • The medium-sized company: Less than 250 workers and turnover of less than 50 million dollars.
  • The large company (not an SME): More than 250 workers and a turnover of more than 50 million.

This classification isn't exhaustive, since a company can have a very large business volume and few numbers of workers. An intermediate point must always be taken into account and, above all, the capacity of the company and the conditions that represent it.

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