SME stands for small and medium-sized enterprise, which refers to businesses that maintain revenues, assets, or a number of employees below a certain threshold. The definition of an SME varies depending on the country and industry. In the European Union, an SME is defined as a company with fewer than 250 employees and either a turnover of less than €50 million or a balance sheet total of less than €43 million. In the United States, an SME is a firm with 500 or fewer employees in the manufacturing industry, while businesses that mine copper ore and nickel ore can have up to 1,500 employees and still be identified as SMEs. SMEs play a crucial role in most economies, particularly in developing countries, as they account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They are generally entrepreneurial in nature, helping to shape innovation and can exist in almost any industry but are more likely to reside within industries requiring fewer employees and smaller up-front capital investments.