Which type of enterprise does an SME classify as?

An SME, or small and medium-sized enterprise, is defined specifically by its size and the number of employees it has, as well as its turnover. The classification includes businesses that are typically characterized by a limited number of employees (ranging from a few to several hundred) and a moderate level of revenue. The significance of SMEs in the economy lies in their ability to drive innovation, create employment opportunities, and contribute to local and national economies.

While large corporations, multinational companies, and franchise organizations may play important roles in the business ecosystem, they do not fall under the SME classification. This distinction is critical as each category has different operational structures, challenges, and regulatory considerations. The correct answer highlights the specific nature of SMEs and their role as small and medium businesses in the enterprise landscape.