What does it mean?
Small and medium enterprises (SMEs) are businesses that have not reached the size of large companies. Each country or funder sets its own limits, usually by number of employees or annual sales, so the definition varies from place to place.
Micro enterprises, such as a craftsperson working alone or with one or two helpers, are sometimes added to the group (MSMEs).
Why does it matter?
SMEs are most of the companies in most countries and provide a large share of jobs, especially outside big cities. They also tend to find it harder to get loans, keep proper accounts and reach new markets. That is why many governments, banks and microfinance institutions run finance and training schemes aimed at them.
How is it different from a startup?
Every startup begins small, but not every small business is a startup. An SME usually aims for steady profit and gradual growth, while a startup aims for fast growth and accepts more risk.
In the Syrian context
According to the Entrepreneurship Observatory (October 2026), most people who answered its sales and challenge questions run small ventures selling products or services to consumers. 76% of ventures sell through social media, 23% from a shop or office and 14% through their own online store.
Supporting the founding and growth of SMEs is one of AoSEn's stated objectives, and its capacity building pillar offers applied skills for SME teams.
Example
A small detergent factory outside Damascus employs twelve people and supplies local shops. It is a typical SME: loyal customers and regular income, but it needs better bookkeeping and a new sales channel to grow.
Common questions
How many employees does an SME have?
There is no single global number. Each country or funder sets its own limits by staff or revenue, so check the definition used by the body you are dealing with.
What does SME stand for?
Small and Medium Enterprises. MSME is also used to include micro enterprises.