What is an SME?

What is an SME?

Culverwell Venge Culverwell Venge

Culverwell Venge

I help SMEs create and operate finance functions that enable financial control and growth

发布日期: 2023年4月21日
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Have you ever wondered how businesses are classified in Zimbabwe? Whether your business is a micro, small or medium or large enterprise?

Understanding classification is important as this allows you to pick on economic policies targeted to the business cluster/size you belong. In Zimbabwe businesses are classified according to the 5th Schedule of the SMEs Act 24:12. The schedule provides a formula looking at no. of employees, value of turnover and asset value as the key determinants.

Per the definition and classification of enterprise as an SME is determined using the formula:

A + B + C

Where:

A is the average maximum total number of full-time employees during any calendar year of the enterprise concerned.

B is maximum total annual turnover of the enterprise concerned

C is maximum gross value of the assets (excluding immovable property) of the enterprise concerned.

And then use the scoring key to determine which entity size a business falls under. (see image for score key).

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