Stands for Small and Medium Businesses and refers to businesses that fall within a specific size category based on factors sucha s
- Number of Employees:
- Small business: fewer than 50 employees
- Medium size: 50-249 employees
- Annual Revenue
Business with less than a few million USD annually, medium size are within tens or hundreds of mlns.
Common SMB Characteristics
- Flexibility: Adaptable to market changes due to smaller size and fewer decision-making layers.
- Resource Constraints: Limited financial and technological resources compared to larger enterprises.
- Local Focus: Many SMBs operate primarily in local or regional markets.
Importance in the Economy
SMBs are critical to most economies worldwide. They:
- Generate significant employment opportunities.
- Drive innovation and entrepreneurship.
- Contribute to GDP growth.