Small-to-Medium Business (SMB) (2024)

FAQs

What is a small to medium sized business SMB? ›

Small to Mid-Sized Business Definition

An SMB (small to medium-sized business) is generally defined as companies with fewer than 1000 employees and less than $1 billion in annual revenue.

A business with 1-20 employees is defined as small, while businesses with 21-100 employees are considered medium-sized. That's the standard definition for SMB, of course.

SME: What's the difference? SMB stands for Small-to-Medium Sized Business while SME stands for Small-to-Medium Enterprise. Businesses and enterprises are very similar in definition. However, various institutions, classifications, and organizations use specific terms to refer to the different types of companies.

What is an SMB (small-to-medium business)? SMBs are classified based on their annual revenue (under $50MM for small, under $1B for medium) or their size (under 100 employees for small, under 1000 employees for medium), depending on who's doing the classifying.

Often, an SMB share is a directory, but it can be any shared resource. For example, network printers are often shared using SMB.

Examples of small to medium-sized enterprises

Some examples of common SMEs include: Hair and beauty salons. Dental practices. Medical centres.

Micro businesses have 1–4 employees. Small businesses have 5–99 employees. Medium businesses have 100–499 employees.

Small enterprises: 10 to 49 employees. Medium-sized enterprises: 50 to 249 employees. Large enterprises: 250 employees or more.

What is a small business? The Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. For industry-level small business size standards used in government programs and contracting, see https://www.sba.gov/ document/support--table-size-standards.

Divers in calm conditions and/or on shallow dives often choose a the smaller 1m SMB. In rougher or more unpredictable seas, divers may carry a slightly larger SMBs (1.5m or 2.0m), which increases visibility.

What is the average SMB deal size? ›

What you can see is: Public SaaS companies that focus on SMBs have an ACV of about $4,800. Public SaaS companies that focus on mid-market have an ACV of about $40k. Public SaaS companies that focus on enterprise have an ACV of about $220k.

The second most popular attribute used to define the SMB market is annual revenue: small business is usually defined as organizations with less than $50 million in annual revenue; midsize enterprise is defined as organizations that make more than $50 million, but less than $1 billion in annual revenue.

Public SaaS companies that focus on SMBs have an ACV of about $4,800. Public SaaS companies that focus on mid-market have an ACV of about $40k. Public SaaS companies that focus on enterprise have an ACV of about $220k.

Small-size enterprises are companies with fewer than 50 employees, and medium-size enterprises are ones with fewer than 250 employees. In addition to small and midsize companies, there are micro-companies, which employ up to 10 employees.

Small Business Market Insights

Global Small Business Market size was valued at USD 119.35 billion in 2022 and is poised to grow from USD 129.49 billion in 2023 to USD 248.71 billion by 2031, growing at a CAGR of 8.5% in the forecast period (2024-2031).

Small Business: Fewer than 100 employees; annual revenue less than $50 million. Mid-Sized Business: 100-999 employees; annual revenue between $50 million and $1 billion. Enterprise: Any business exceeding these thresholds.