SME stands for "Small and Medium-sized Enterprises" or "Small and Medium-sized Businesses". These are businesses whose personnel and revenue numbers fall below certain limits. The definition of an SME varies by country and region. For example, in the European Union, an SME is defined as a company with fewer than 250 employees and either an annual turnover of less than €50 million or a balance sheet total of less than €43 million. In the United States, the Small Business Administration (SBA) classifies a small business according to its ownership structure, number of employees, earnings, and industry.
It is important to note that SMEs play an important role in an economy. They outnumber large firms, employ vast numbers of people, and are generally entrepreneurial in nature, helping to shape innovation.
