# SME

CEFR C1 · Noun

Source: https://englishreference.com/word/sme
Updated: 2026-05-11

## Definition

Stands for Small and Medium-sized Enterprise. A company that is not very large and has a limited number of employees and a certain amount of income.

For teachers: Abbreviation for Small and Medium-sized Enterprise. A business whose personnel numbers and revenue fall below certain limits, which vary by jurisdiction and industry.

## Examples

- The government offers special grants to every local SME.
- Many an SME struggled to adapt to the new digital regulations due to limited administrative resources compared to larger corporations.
- While multinational conglomerates dominate the headlines, the collective economic output of the SME sector remains the primary driver of employment and innovation in most developing economies.

## Usage notes

- Often used as a collective term in economic reports; the plural is 'SMEs'.

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