What is the full form of SME?

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    • SMEs are those companies which have employees or turnover below a certain limit.These small enterprises outnumber large companies by a wide margin and also provides employment to a large number .They are often credited as being responsible for driving innovation and competition in many economic sectors worldwide.
    • Small and medium enterprises, as the name suggests are companies that are relatively smaller in size in terms of employee strength and production capacities. The limit may vary from one country to another and also from one region to other. Other terms by which these are known are small and medium-sized enterprises (SMEs) and small and medium-sized businesses (SMBs). In India the definition is based upon the amount of investment. If investment in plant and machinery is more than Rs. 25 lacs but does not exceed Rs. 5 crores then it is categorized as SME.

      To encourage the business, government have favorable tax-scheme and various subsidies lined up for these sector.

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