Defining SMEs – A Less Imperfect Way of Defining Small and Medium Enterprises in Developing Countries


Within the community whose work it is to promote economic growth in developing countries, the role of small and medium enterprises (SMEs) remains a topic of debate. This debate has been badly served by faulty definitions. As career practitioners in SME finance, we review in this paper how SMEs are defined for developing countries, how such definitions are used, and why this matters.

Published : September 01, 2008