Small and Medium Enterprises PDF

Contents
SME.................................................................................................................................................2
IPR...................................................................................................................................................3
References........................................................................................................................................4

SME
The term stands for Small and Medium Enterprises. To define this term specifically, this
is to be stated that every country has different criteria to define this term based on various factors
such as asset size, number of employees, annual sales or combination of one or more factors. In
the USA, the definition of SME varies according to the nature of the industry. For instance, for
the manufacturing industry, an SME is an enterprise that has 500 or fewer employees in number.
On the other part, for a wholesale trade industry, an enterprise will be considered as SME if 100
or fewer employees are employed there. In such a manner this would not be wrong to state that
in the USA, there is no single definition of SME and nature of industry define the same.
Apart from the industry, the definition of the subjective term also varies from sector to sector.
Moving the focus towards characteristics of SME, this is to mention that every SME has the
same characteristics irrespective of the industry. These characteristics are discussed as below:-
 An SME has limited employees who are required to handle all the necessary tasks and
therefore these enterprises are very much dependent on these employees (Carpenter,
2018).
 Due to their limited products and services, these enterprises have relationships with very
limited clients and suppliers. They are closer to their customers and other business
partners.
 Flexibility is the main feature of an SME. Because of small size and centered
management changes are very easy in comparison to other businesses.

 These businesses serve to a very small and limited market area. Less capital and number
of employees prevent these enterprises to serve an area more than the local one (Ingram,
2018).
IPR
The term IPR stands for Intellectual Property Right. In order to explain this term, this is
to be stated that this term refers to an invention, brand, or any other kind of unique creation.
IPR(s) are the rights which protect someone's intellectual property from unauthorized use by
another party. In conjunction with this, these rights can be understood as a security that
government grants to a person in respect to the creation of his/her mind. The rights are granted
for a certain period of time (Wto.org, 2018). IPR provides an exclusive right to the owner of
intellectual property (Prv.se, 2018). These rights can be related to patent, trademark, copyright or
any other unique business idea or process. Every nation has it is own different law on the subject
of IPR. Being a member of the World Trade Organization, USA has included the topic of IPR in
it is a national law. In the USA, a creative work is automatically protected by copyright law, but
for the protection of other intellectual property such as patent and trademark, the owner has to
make an application to respective authority to seek IPR. IPR laws of USA are very
comprehensive and provide the protection to the owner from an authorized user (domestic as
well as international depending on the nature of IPR). These laws provide protection from the
issue of infringement. In conclusion, this is to state that these rights have been developed in order
to motivate new creations by providing protection and security to their developers/creators.

References
Carpenter, M.E. (2018). Characteristics of SMEs. Retrieved From: https://bizfluent.com/info-
8714551-characteristics-smes.html
Ingram, D. (2018). List and Explain the Characteristics of a Small Scale Business. Retrieved
From: https://smallbusiness.chron.com/list-explain-characteristics-small-scale-business-
10472.html
Prv.se. (2018). Intellectual property rights. Retrieved From: https://www.prv.se/en/prv-for-
entrepreneurs/glossary/intellectual-property-rights2/
Ward, S. (2018). SME Definition (Small to Medium Enterprise). Retrieved From:
https://www.thebalancesmb.com/sme-small-to-medium-enterprise-definition-2947962
Wto.org. (2018). What are intellectual property rights? Retrieved From:
https://www.wto.org/english/tratop_e/trips_e/intel1_e.htm