SME stands for Small and Medium Enterprises, which are businesses that maintain revenues, assets, or a workforce below a certain threshold, which varies across countries and industries.
SMEs play a significant role in the growth of the global economy as they form the backbone of many industries. Typically characterised by their limited resources, they often face challenges such as accessing capital, scaling operations, and competing with larger organisations.
Governments and institutions worldwide recognise the significance of SMEs and provide various support measures, including financial aid, skill development programs, and policy incentives.
SMEs contribute significantly to local economies by promoting entrepreneurship and addressing community-specific needs. They also serve as a breeding ground for innovation, often introducing disruptive technologies and services.
FAQ
SME stands for Small and Medium Enterprises.
The definition of an SME varies by country and industry, but it generally depends on criteria like the number of employees, annual revenue, or total assets. For example, in India, businesses with investments in plant and machinery under ₹50 crore and annual turnover under ₹250 crore are categorised as SMEs.
SMEs often encounter challenges such as limited access to funding, technological constraints, difficulty in attracting skilled talent, and regulatory compliance. However, many governments provide targeted support to address these issues.
SMEs can adopt digital tools such as Human Resource Management System (HRMS), cloud computing, e-commerce platforms, and Customer Relationship Management (CRM) systems to streamline operations, expand market reach, and improve customer engagement.
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