Sme Definition According To World Bank

Sme is short for small and medium sized enterprise or small to medium sized enterprise.

Sme definition according to world bank. The abbreviation sme is used by international organizations such as the world bank the european union the united nations and the world trade organization wto. The smes definition is based on the country. Small and medium sized enterprises smes or small and medium sized businesses smbs are businesses whose personnel numbers fall below certain limits. The eu also defines an sme as a business with fewer than 250 employees a turnover of less than 50 million or a balance sheet total of less than 43 million.

The primary audiences of this document are policymakers focussed on economic development leaders from the private sector investors colleagues from the world bank and other development professionals that work on various aspects of small and medium enterprises smes in countries around the world. Standard definition as to what constitutes an sme. Basically smes definition is based on the numbers of workers of the. This threshold varies by country.

The gibson and vaart definition is attractive because annual turnover is a good tool to assess the contribution of msmes to gdp. Sme definition what is an sme. The uk definition of sme is generally a small or medium sized enterprise with fewer than 250 employees. World bank have not published or defined specific definition on the sme.

But they play an outsized role in developing economies where they account for about half of employment and the majority of jobs created. These firms are independent non subsidiary businesses that employ no more than a certain number of workers. An sme is a formal enterprise with annual turnover in u s.