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Interesting facts about small and medium sized enterprises


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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