This document discusses small and medium enterprises (SMEs) including definitions, classifications, and legal boundaries around the world. SMEs are defined as businesses with personnel or employment below certain limits that vary by country. They make up the vast majority of businesses worldwide and are an important source of employment. The document outlines SME classifications and limits in various countries and regions including India, Egypt, Africa, Bangladesh and Asia. SMEs are classified based on factors like investment amount, turnover, number of employees, and fixed assets.

2. Contents:-
History of Small Scale Industry.
Overview.
Legal boundary on SMEs around the world.
Classifications Of Enterprises.

3. History of Small Scale Industry:-
 Small and medium-sized enterprises (SMEs) or small and medium-
sized businesses (SMBs) are businesses whose personnel numbers fall
below certain limits.
 The abbreviation "SME" is used by international organizations such as
the World Bank, the European Union, the United Nations, and the
World Trade Organization (WTO).
 In any given national economy, SMEs sometimes outnumber large
companies by a wide margin and also employ many more people.
 For example, Australian SMEs makeup 98% of all Australian
businesses, produce one-third of the total GDP (gross domestic
product) and employ 4.7 million people. In Chile, in the commercial
year 2014, 98.5% of the firms were classified as SMEs.
 In Tunisia, the self-employed workers alone account for about 28% of
the total non-farm employment, and firms with fewer than 100
employees account for about 62% of total employment.
 The United States' SMEs generate half of all U.S. jobs, but only 40% of
GDP

4. Overview:-
 SMEs are important for economic and social reasons, given the sector's role in
employment.
 Due to their sizes, SMEs are heavily influenced by their Chief Executive Officer,
a.k.a. CEOs.
 The CEOs of SMEs are often the founders, owners, and managers of the SMEs.
 The duties of the CEO in a SME mirror those of the CEO of a large company: the
CEO needs to strategically allocate their time, energy, and assets to direct the
SMEs.
 Typically, the CEO is the strategist, champion and leader for developing the
SME or the prime reason for the business failing.
 This definition is provided in Section 7 of Micro, Small & Medium Enterprises
Development Act, 2006 (MSMED Act) and was notified in September 2006.
 The Act provides for the classification of enterprises based on their investment
size and the nature of the activity undertaken by that enterprise.
 As per MSMED Act, enterprises are classified into two categories -
manufacturing enterprises and service enterprises.
 For each of these categories, a definition is given to explain what constitutes a
micro-enterprise or a small enterprise or a medium enterprise.
 In India, if an enterprise does not fall under the above categories, it would be
considered a large-scale enterprise.

5. Legal boundary on SMEs around the world
 Multilateral organizations have been criticized for using one measure for all.
 The legal boundary of SMEs around the world vary, and below is a list of the
upper limits of SMEs in some countries.
 African:-
 African small businesses frequently struggle to get the cash they require to
thrive.
 According to the SME Finance Forum, the formal financing gap for African SMEs
averaged 17% of GDP across the 43 countries assessed in 2017.
 Egypt:-
 Most of Egypt's businesses are small-sized, with 97 percent employing fewer than
10 workers, according to census data released by state-run statistics body
CAPMAS (Central Agency for Public Mobilization and Statistics).
 Medium-sized enterprises with 10 to 50 employees account for around 2.7
percent of total businesses. However, big businesses with over 50 employees
account for 0.4 percent of all enterprises nationwide.
 The data is part of Egypt's 2012/13 economic census on establishments ranging
from small stalls to big enterprises.
 Economic activity outside the establishments – like street vendors and farmers,
for example – were excluded from the census.

6. Asia:-
India defines Micro, Small and Medium Enterprises based on dual criteria of investment
and turnover. In June 2020, India updated the definition as follows.
Sr No. Classification Criteria (in ₹)
1. Micro Enterprises Investment <= 1 cr and Turnover <= 5 cr
2. Small Enterprises Investment <= 10 cr and Turnover <= 50 cr
3. Medium Enterprises Investment <= 50 cr and Turnover <= 250 cr
Businesses that are declared as MSMEs and within specific sectors and criteria can then
apply for "priority sector" lending to help with business expenses; banks have annual
targets set by the Prime Minister's Task Force on MSMEs for year-on-year increases of
lending to various categories of MSMEs. [22] MSME is considered a key contributor to
India's growth and contributes 48% to India's total export.

7. Bangladesh:-
In Bangladesh, Bangladesh Bank defines Small and medium enterprises based on fixed
asset, employed manpower and yearly turn over, and they are definitely not Public
Limited Co. and requires these characteristics -

8. Classifications Of Enterprises:-

9. THANK YOU