By | Khaled Ismail | www.entrepreneur.com
You’ve worked hard to start your business, had many sleepless nights, countless rejections and failures. At times, you even doubted yourself and what you were doing, but then you prevailed, and your business grew, and became successful. Nobody knows the pain you went through except you- and now your company is now labelled a small- and medium-sized enterprise (SME).
Let’s start by defining what an SME is. If you have a company which employs less than 500 people and generates up to US$50 million, then you qualify to be called an SME. It is important to note that SMEs are not so dissimilar to family-owned companies; it’s just the shareholder composition that is different.
According to the world Bank, “SMEs play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide, and they are important contributors to job creation and global economic development. They represent about 90% of businesses, and more than 50% of employment worldwide.”
For example, in the UAE, as of mid-2020, there were 350,000 SMEs, and they represented over 94% of all companies operating in the country. 73% of them operated in the wholesale and retail sector, 16% in the services sector, and 11% in the industry sector. Together, they employed over 86% of the labor force in the private sector, and made up over 60% of the GDP.