What is the full form of SME

SME: Small and Medium-sized Enterprises

SME stands for Small and Medium Enterprises. They are also known as small and Medium Enterprises or small and medium-sized businesses (SMBs).

The small and medium enterprises have a certain number of employees and the investment in the plant and machinery cost falls within a certain level of amount. Small and Medium Enterprises play a very important role in the development of any country and growth of that country's industrial economy. They also motivate people for driving innovation and competition in many economic sectors.

Workforce and Turnover

The workforce and turnover of small and medium sized enterprises vary according to the different countries. In India, under section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, Indian government specifies the size of micro, small and medium enterprises.

In Case of Manufacturing Enterprises

Micro Enterprises: Investment in the plant and machinery doesn't exceed 25 lakh rupees.

Small Enterprises: Investment in the plant and machinery is more than 25 lakh rupees but does not exceed 5 crore rupees.

Medium Enterprises: Investment in the plant and machinery is more than 5 crore rupees but does not exceed 10 crore rupees.

In case of Service Enterprises

Micro Enterprises: Investment in equipments does not exceed 10 lakh rupees.

Small Enterprises: Investment in equipments is more than 10 Lakh rupees but does not exceed 2 crore rupees.

Medium Enterprises: Investment in equipments is more than 2 crore rupees but does not exceed 5 crore rupees.