small and medium enterprise (SME)

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Business segment term used differently in different countries, sometimes differently in different industries in the same country. In the US, any firm from a small-office home-office (SOHO) to a large corporation may be called a SME. More specifically, firms included in Russel indices such as Russel 2500 index and Russel Midcap index are classified as SMEs. In European Union, a firm with (1) 50 to 250 employees, (2) annual turnover of Euro 7 to 40 million, (3) total assets less than Euro 27 million, and (4) not more than 25 percent ownership by a large corporation, may be classified as a SME. The International Chamber Of Commerce (ICC) defines a SME as having 100 to 2000 employees.


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