What is Small to medium enterprise (SME) ?

The business segment in coming under the category of small office-home office, also known as SOHO and larger enterprise category are known as a small-to-medium enterprise (SME). As per the standard definition of the European Union (EU), any company which has not larger than the strength of five hundred employees is considered under SME.


SOHO – Small Office / Home Office

Any company that has the small office or home office environment is known and categorized under the Small Office/Home Office (SOHO) business segment. The SOHO is considered as the smallest businesses in small business categories. Even privately held companies or the companies owned by self-employed individuals are considered under the SOHO business segment. SOHO is defined based on the characteristics of having the small office in size and less number of employees.

As per the standard guidelines, offices which has 10 or less number of employees, although it has several years of in more recent years of establishment, it is considered under the small office category. Several research and marketing firms are categorized under SOHO companies which has 1-4 employees. Companies with 5+ employees are categorized under different segment within the small business slab.

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