Defining the SME: A Multi-Perspective Investigation

It is widely accepted that small- and medium-sized enterprises (SMEs) have always been the backbone of the world economy; however, less is known on the difficulty that researches have in coming up with a precise definition of an “SME”. The literature has provided a large number of quantitative parameters for measuring different aspects of SMEs and many qualitative variables that make the definition of an SME more comprehensive and their classification more accurate. Nevertheless, there is no one solution suitable for all purposes. This chapter will analyse the definitions of SME using a multi-perspective framework, in the awareness that the application of quantitative criteria alone will present a very heterogeneous set of businesses and therefore it is only by identifying recurrent qualitative characteristics that we can help define further SMEs’ shared organisational and management features.