SME Full Form Name
Full
Form of SME :
Small
to Medium Enterprises
SME
Full From is Small to Medium Enterprises.
These are business models or companies that have less than certain defined
limit in certain personal numbers. These numbers include a number of employees
and the profit limit. The numbers that define SME can vary between
countries. The SME figures pertaining to India, according to the MSMED (Micro,
Small, and Medium Enterprises Development) act of 2006 are (1) A small
enterprise is the one where the investment of machinery and plant is between 12
lakh and 5 crores, (2) A medium enterprise is the one where the investment of
machinery and plant is between 5 crore and 10 crores. The SME sector in India
is said to be the backbone of the economy. It contributes to over 40% of the
exports and there are over 60 million people employed with around 1.3 million
jobs created each year.
Small
and Medium-sized Enterprises are essentially businesses whose numbers of
personnel fall below a prescribed limit. The acronym SME is primarily used in
the European Union as well as by other international bodies such as the United
Nations (abbreviated as the UN), the World Trade Organization (abbreviated as
WTO), and the World Bank. SMEs have long outnumbered big enterprises by a wide
margin and are known to employ a greater number of people. These businesses are
often credited to have motivated competition and innovation in several economic
sectors.
The
definition of SMEs varies from one to country to the other and the variation
may be minute or wide depends upon many parameters. For example, in Kenya, the
acronym MSME is used; it stands for Micro, Small, and Medium Enterprises. A
typical MSME will have 1000 employees maximum. In Nigeria, The central Bank of
Nigeria states that definition is based as per the number of personnel and
asset base of the business concerned. In India, Section 7 of Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006 defines the size of these
three categories of enterprises. Within the European Union, the definition
differs from one member nation to another member nation on parameters such as
financial subsidy and business rate reduction.
In
New Zealand, an enterprise that employees 19 or fewer persons will fall within
the category of SME. In Australia however, an enterprise with 200 or fewer
personnel numbers would fall within the category of SME. SMEs in Australia
contribute about 97 percent of the Australian business and produce about
one-third of the cumulative Gross Domestic Product (abbreviated as GDP). In the
United States of America, the Small Business Administration is the body
responsible for setting up necessary standards for SME.