We define Small Medium Enterprises (SME) or businesses (SMB) as organizations that pursue opportunities focused on serving a local market.
SME's / SMB's have the following typical characteristics:
- They focus on addressing local markets only
- They create “non-tradable jobs” – jobs that must be performed locally, e.g. restaurants, dry cleaners, service industry.
- They are often family businesses. People who start them seek to maintain control, not to create high growth. Likely an individual-driven founder group.
- The company generally grows at a linear rate. When investment is made into the company, the company (in terms of revenue) will respond quickly in a positive manner.