What is a micro, small and medium enterprise?
The term SMEs largely encompasses smaller enterprises, but even SME is an umbrella term.
An enterprise by definition is a business or organisation started by individuals who have the ability to manage risks, take initiative and plan calculated decisions with the primary goal of making a profit. As individuals living in Singapore, we are often surrounded by large corporations in Changi Business Park and Marina Bay Sands. However, while companies like IBM and DBS are all enterprises, there are also other smaller enterprises and entrepreneurs all around us. It may be anything from the local grocery market to an online edutech company like CareerContact, but Singapore has a rich variety of different sized enterprises.
Take a look at some of the different types of enterprises around us:
Micro-Enterprise
Similar to what its name suggests, a micro-enterprise is a small business that is started by sole proprietors (run by one individual) and operates with limited (10 or fewer) employees. Generally, as a result of this, micro-enterprises fall under the bracket of enterprises that earn less than $250,000 annually.
For example, Hon Kah Trading, now known as Cycling Lesson, is a micro-enterprise which began in 2000. It’s a family-owned business which offers cycling lessons to all ages in addition to selling bicycles. Read more about Hon Kah Trading’s journey as an SME.
Small Enterprise
While there are certain similarities between a small enterprise and a microenterprise, Micro Enterprises are more informal and act on a smaller scale than a Small Enterprise, which has more employees (10–49 employees). In addition, according to PayScale, small enterprises earn an average of $73,000 annually.
One example of a small enterprise is CocoCart which focuses on empowering small businesses to manage their own sales without apps or marketplaces that charge unsustainable fees and commissions.
Medium Enterprise
In general, small and medium enterprises are often referred to together as “SMEs” ( small and mid-sized enterprises). However, medium enterprises operate on a larger scale as they have up to 250 employees. Currently, it is said that approximately 200,000 US companies meet the definition of a medium enterprise. Upon investigation, it was understood that medium enterprises generate annual revenue between $10 million and $1 billion.
One medium enterprise in Singapore is SINenergy (Sustainable Innovation New Energy). The company focuses on minimising impacts on the environment by promoting solar energy solutions.
Micro-enterprises, small enterprises and medium enterprises are all huge components in our day to day lives and new ones pop up every year. In fact, Singapore is a popular launch site for many startups, attracting entrepreneurs and investors from all over the world. Look around, micro, small and medium enterprises might be closer to home than you think.
CareerContact is committed to improving workflows and supporting SMEs at scale. Whether you are an educator or industry professional interested in lending your support, feel free to reach out to us at CareerContact.cc or connect with us on Instagram, Linkedin, Facebook or Twitter.
