What Does SME Stand for

what is the SME:

Is known as SME to the acronym meaning “Small and medium-sized enterprises” that exist in the market of a country. The SMEs are acronyms that are used to classify a company in relation to the number of workers according to their sector of activity, and in some countries by net income.

The SMEs are characterized by a micro, small or medium-sized company, operated by a natural or legal person, and any form of organization. Likewise, the SMEs have freedom to develop any kind of activity, be it production, marketing or provision of services. On the other hand, the SMEs are identified by being trained by people who do not have little technical talent or expertise in finance, marketing and other areas that the big companies have.

The SMEs have an important role in the economy of each country for the generation of jobs and for their contribution to the production of a country, which is seen in its gross domestic product. Is in relation to this point, and by its size, goal, ability, and need to compete with large enterprises, the SMEs need help and protection from the State, through the granting of credits or financing, as well as assistance in management, innovation and technological development.

Finally, SME is also known as SME, or by the acronym PME.

Advantages and disadvantages of the SMEs

The advantages of SMEs son:

They have great capacity to generate jobs, and it is therefore the importance for a country. Due to their small team, it is easier to modify its structure, and adapt to the new ways of the market. There is greater involvement of workers, due to its proximity to the company. They can provide a better service to customers, with personalized and close treatment.

For its part, the SMEs bring the following desventaja:

Inflation and devaluation affects them easily. Smaller economic capacity and ability to compete. Less possibility of expansion. There is no financial support by the State, the SMEs do not have capital to make investments necessary for their growth, as well as staff and work tools.

SMEs in Mexico

In Mexico, in reference to this point was created the Secretariat for small and medium-sized enterprises, which has as its fundamental task design and promote tools and programmes for the development, consolidation and creation of the micros, small and medium-sized enterprises.

The secretariat established by the law on the development and competitiveness of SMEs, the classification of companies based on their sector of activity and number of empleado:

EmpresaTrabajadoresComercioMicroempresa0-10 OutlineCode11-30 small medium empresa31-100IndustrialMicroempresa10 SectorTipo or less small OutlineCode11-50 medium empresa51-250ServiciosMicroempresa1-10 OutlineCode11 small – empresa51 medium 50 – 100

on the other hand, in Mexico there is the Mexican SMEs with the objective of providing qualitative and quantitative information on the performance of the companies comprising the Group of the SME Observatory.

In relation to all as contemplated above, you can see the hard work by the Government of Mexico to promote the development and the creation of SMEs in order to generate employment and economic and social well-being.

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