The substantial role of small and medium enterprises (SMEs) in the domestic economy as an agent of growth has generally been recognised throughout the world. How are small and medium sized enterprises defined? According to the United Nations Industrial Development Organisation (Unido), the definition of SMEs is a significant issue for policy development and implementation, and depends primarily on the purpose of classification. Therefore, there are various definitions and criteria of SMEs adopted by different countries – some refer to the number of employees as their key criterion for SMEs, others use invested capital, whereas some use a combination of the number of employees, invested capital, sales and industry type.
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