An SME, or small and medium-sized enterprise, is a business that maintains revenues, assets, or a number of employees below a certain threshold. The definition of an SME varies by country and industry, but generally, an SME is a business with fewer than 250 employees. In the United States, an SME is defined as a business with no more than 500 workers. SMEs play an important role in shaping innovation and driving competition in many economic sectors. They are generally entrepreneurial in nature and can exist in almost any industry but are more likely to reside within industries requiring fewer employees and smaller up-front capital investments. Common types of SMEs include legal firms, dental offices, restaurants, and bars.