What is an SMB?

This is actually a difficult question to answer. The acronym itself stands for Small and Mid-size Business, but what that means is pretty vague. According to the small business administration (government), depending on the sector and the size of the market share of a business, a company making $20 million a year can be categorized as a small business. I know a lot of small business owners that would consider that a pretty large sum.

Messy Desk
Messy Desk (Photo credit: andhij)

Most of the organizations that consider themselves within the SMB sector, are actually micro-businesses. If your business was just demoted, I’m sorry. Here are some guidelines that I like to use. They’re based loosely on the European Commissions guidelines as well those used at Big-5 consulting houses.

  • Small Business: Between 5 and 50 employees (excluding sub-contractors); revenues NOT exceeding $15 million per year
  • Mid-size Business: Between 51 and 250 employees (excluding contractors); revenue NOT exceeding $50 million per year

If you need further clarification, here you may find some “you know you’re a small business” qualifiers…