Small and medium-sized entity

Definitions can use employee numbers, turnover, assets, independence or other criteria, with thresholds that vary by jurisdiction, programme and date. The classification is not a universal statement that the business is simple, unprofitable or without formal controls. Financing analysis considers its actual cash needs, information, collateral, ownership objectives and access to providers. Distinguish an economic SME label from eligibility to use a particular accounting standard, which can involve public accountability and local adoption rather than only size. State the purpose before applying a threshold.