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small to medium enterprise (SME)

1) SME (small-to-medium enterprise) is a convenient term for segmenting businesses and other organizations that are somewhere between the "small office-home office" ( SOHO ) size and the larger enterprise . The European Union has defined an SME as a legally independent company with no more than 500 employees.

2) SME also stands for the Society of Manufacturing Engineers.

This was last updated in March 2011

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SME is indeed a small or medium size entity, but the reference to the EU definition is not completely correct. According to EU the headcount limit for a small entity is <50, a medium is <250. The complete definition relies on other aspects too and is found in this 60 page document:
http://ec.europa.eu/DocsRoom/documents/10109/attachments/1/translations/en/renditions/native
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