Small- and Medium-sized Enterprises

Definition

• There are many definitions for this term, but banks define small businesses as those having authorized credit limits of $500,000 or less, while medium-sized businesses have authorization levels of up to $1 million.

Notes
A term widely used by the World Bank and the World Trade Organization (WTO).

Synonyms
medium business, small enterprise, medium enterprise, small business

Acronyms
SMEs

Alternate Spellings
Medium Enterprises, Medium-sized Enterprise, Small-sized Enterprises, Small Enterprise, Medium-sized Enterprises, Small-sized Enterprise, Small Enterprises, SMEs, Medium Enterprise

Related Terms and Acronyms

• Business Bankruptcy — Definition,
  • A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.
• Commercial Loan — Definition,
  • A loan taken out by a business.
• Commercial Mortgage — Definition, Very Important,
  • A mortgage for commercial property.
• Earned Income — Definition,
  • Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
• Entrepreneur — Definition,
  • A person who starts and manages a business.
• Lease (lse) — Abbreviation,
  • A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
• Line of Credit (LOC) — Acronym,
  • A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
• Loan — Definition,
  • Letting another party use something of value temporarily.
• Low-documentation Loan — Definition,
  • A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
• Mortgage (mtg) — Abbreviation, Important,
  • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
• Proprietor — Definition,
  • The owner of a business or property.
• Self Employed Person (SEP) — Acronym,
  • A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.
• Small- and Medium-sized Businesses (SMBs) — Abbreviation,
• Small- and Medium-sized Industries (SMIs) — Abbreviation,
• Valuation — Definition,
  • The estimation of a property's price value through an appraisal.
  • The process of finding the worth of an asset or business.