In this post we will know the Full Form of SME. If you are a student and preparing for competitive exams, then you should know the full form of SME because especially in every exam, one or two questions related to the full form are definitely asked.
If you read this post carefully, then apart from the full form of SME, what is called SME? You will get good information about this also.
Full form of SME
The full form of SME is “Small and Medium-sized Enterprises”. They are also known as small and medium enterprises or small and medium-sized businesses (SMBs).
Small and medium enterprises have a certain number of employees and investment in plant and machinery cost falls within a certain amount. Small and medium enterprises play a very important role in the development of any country and the development of the industrial economy of that country. They inspire people to innovate and compete in many economic sectors.
Workforce and Turnover
The workforce and turnover of small and medium-sized enterprises vary from country to country. Under Section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 in India, the Government of India specifies the size of micro, small and medium enterprises.
In Case of Manufacturing Enterprises
- Micro Enterprises: Investment in plant and machinery does not exceed Rs 25 lakh.
- Small Enterprises: Investment in plant and machinery is more than Rs 25 lakh, but not more than Rs 5 crore.
- Medium Enterprises: Investment in plant and machinery is more than Rs 5 crore, but not more than Rs 10 crore.
In case of Service Enterprises
- Micro Enterprises: Investment in equipment does not exceed Rs 10 lakh.
- Small Enterprises: Investment in equipment is more than Rs 10 lakh, but not more than Rs 2 crore.
- Medium Enterprises: Investment in equipment is more than Rs 2 crore, but not more than Rs 5 crore.
Conclusion
Through this post, we learned the full form of SME and along with this, we also understood well What is SME?