What is an SMB?
SMB stands for Small & Medium Business
If you’ve reached this page you may already know what an SMB is, if not, it is a classification for small and medium businesses. They are generally classified by number of employees. Definitions differ, but not dramatically. Generally, a “small” business is one with less than 100 employees while a “medium” business is one with 100-999 employees. Sometimes they are defined based upon revenues also. Gartner uses the following definition:
“The attribute used most often is number of employees; small businesses are usually defined as organizations with fewer than 100 employees; midsize enterprises are those organizations with 100 to 999 employees. 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.”
The U.S. Government’s SBA [Small Business Administration] generally defines a small business as having less than 500 employees but makes exceptions to that based on certain industries. This is for purposes of the tax code and not directly relevant here, however, we include it because many of our readers may have seen 500 and wonder why we are using 100 and our statistics (below) were obtained from the SBA.
We believe the definition which most accurately reflects most people’s perception is 1-99(Small) and 100-999(Medium) number of employees definition. Below are a few statistics, and these vary also, on SMBs here in the United States. This information is drawn from the SBA and thus uses the under 500 employee definition but we feel it provides the best data available:
- 28 million small businesses including non-employee businesses
- 6 million small businesses who have employees in addition to the owner(s)
- 150,000 medium size businesses (this number when defined as 100-999 employees is closer to half a million)
Concerto believes these are the economic and employment engines in this great country of ours. And these are the businesses that Concerto is focusing on to bring the best products, services, and productivity apps to help them grow.