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
small enterprise, medium enterprise, medium business, small business

Acronyms
SMEs

Alternate Spellings
Small Enterprise, Small Enterprises, Medium-sized Enterprise, Small-sized Enterprises, Small-sized Enterprise, SMEs, Medium-sized Enterprises, Medium Enterprises, 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 process of finding the worth of an asset or business.
        • The estimation of a property's price value through an appraisal.
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