What is the Meaning of: SMES | Concept and Definition of: SMES
SME is the acronym for small and medium enterprises. It is company commercial, industrial or other type with a reduced number of employees whose income is moderate: "my father is working in an SME", "Rene started with an SME and, today, he is the owner of a national chain".
Although the European Union encompasses micro-enterprise in the category of SMEs, regarding the size and the number of employees, the France also distinguished VSES (very small).
The SMEs varies depending on the country. For the countries of the EU, the category of SMEs is associated with number of employees and annual turnover. Between 1 and 10 employees (less than 10 people), it is a micro-enterprise (or very small business in the case of the French legislation); between 11 and 50, a small company. However, these figures may vary depending on the region.
In the case of the American continent, we will mention two examples. To quote that a country of North America, to the Canada small business together 5 to 50 employees while the averages may not use more than 500 people. Argentina (South America), firms are classified based on their annual sales and their sector of activity (an industrial SMEs may have an annual turnover that, in another economic sector, would put this company among the largest).
SMEs have specific needs to be met by the State. Together, these companies not only generate wealth for their country but are also one of the biggest engines of employment. However, given their peculiarities, they need protection and incentives (of a lever, so to speak) to compete against large corporations.
Lines of credit offers special conditions, the benefits of tax (on taxes) and support for a consultancy service are some of the resources that the State makes available to SMEs to enable them to develop.