Interesting facts about small and medium sized enterprises
Small and medium sized
enterprises or SME e or Small and medium sized businesses or SMB are those
ventures which maintain a limited number of employees or a limited amount of
revenue. However, the definition of a SME or SMB differs from country to
country. Here are some specific information about the SME s that might be of
some interest to regular people.
SME
in the European Union
The European Commission in July 2011, proposed
the opening of a consultation in order to define the word SME. According to the
European definition, SMEs, which include micro, small or medium sized
enterprises, are such enterprises, which have lesser than 250 employees, their
annual turnover being lesser than 50 million euro and/ or, the balance sheet
total is lesser than 43 million Euros.
Generally the parameter
of defining SME is simple and broad in scope in the European Union. According to this definition-
- Medium sized enterprises consist of less than 250 employees,
- Small enterprises to have up to 50 employees,
- Micro enterprises to have up to 10 employees.
However, often within
the European Union itself, the numbers of employees vary from state to state.
Thus, whereas in Germany, the number limit of an SME is fixed at 225, in
Belgium the number is 100.
Other
identifying features of the SME
The SMEs are generally known for spending a lot
of money on Information Technology. Therefore, the SMEs are stronger in the
area of innovation than other enterprises. At the same time, this expenditure
calls for sufficient investments, thus they need to attract more funds to keep
their innovative character alive. This might also mean that when these
enterprises emphasize on innovative, “out of the box” ideas, they probably have
to sacrifice some of the functionality of the existing techniques.
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