The full form of SME is small and medium-sized enterprises. These enterprises have a limited number of investments, assets, and workers and have lower than a specific amount of turnover. The cost of equipment and plant falls below a certain amount. There are different types of SMEs or small and medium-sized enterprises. We will know all about them in this blog!
Before that, check out the threshold of small and medium industries for a better understanding.
|Type of Company
|Threshold of Investment
|Threshold of Turnover
|More than 1 Crore and less than 10 Crores
|More than 5 Crore and less than 50 Crores
|Not more than 50 Crores
|Not more than 250 Crores
Types of SME
According to section 7 of the Micro, Small & Medium Enterprises Creation Act 2006, the type of SME is decided based on the amount of investment and the sector that the enterprise belongs to.
Manufacturing Units: Engage in the production of tangible goods like clothing, machinery, etc. For small enterprises, the cost of investment is between 25 lakhs to five crore. For medium enterprises, the cost of investment is between five crore to 10 crore.
Service Units: These units or enterprises produce and offer nontangible services like business consultancy, management services, marketing services, and so on. For small enterprises, the cost of investment is between 10 lakhs to two crore. For medium enterprises, the cost of investment is between two crore to five crore.
Trading Units: These units or enterprises offer trading facilities like importing and exporting.
Retail Units: These units or enterprises offer to sell consumer goods directly to the consumer in their shops and retail stores.
Popular Full Forms
We hope this blog has helped you understand the full form of SME and everything related to it. If you want to know more, find the 300+ full forms list on our blog. In the world of short forms, you can rely on the Leverage edu page to know about more full forms like this! Connect with us study abroad experts to achieve your international dream today!