Small and Medium Enterprises (SMEs) are significant across the globe as they mark an entrepreneur’s initial step and sustain millions of families.

There are three primary classifications of SMEs:

Microenterprises
These have fewer than 10 employees and generate no more than 4 million pesos in annual sales. Often, they utilize microenterprise loans to start their operations. Usually, they have a single owner in charge of production, administration, and marketing, with a manufacturing system that is minimal in machinery or entirely artisanal.

● Grocery stores
● Takeaway coffee shops
● Online stores for handmade products like costume jewellery, candles, soaps, and confectionery
● Online workshop and course sales
● Locksmiths
● Beauty salons

Small Businesses
Employing a maximum of 15 to 100 workers, their annual general balance typically reaches 100 million pesos. They may have one or multiple owners and are divided into teams focusing on administrative, production, and marketing tasks. These businesses function well without needing rapid growth but have the chance to diversify their products and optimize operations through SME financing. Examples include:
● Event planning companies
● Bakeries
● Mechanic workshops
● Bookstores
● Sales or legal consultancies

Medium Enterprises
Their workforce ranges from 100 to 250 employees, averaging annual sales of 250 million pesos. Their structure is more complex, involving more people in decision-making, and they have better chances to expand their business both locally and internationally. Meeting corporate goals requires a higher level of commitment from their employees. Examples of medium enterprises are:
● Marketing agencies
● Publishing houses
● Hospitals
● Schools
● Gas stations
● Expanding chains of restaurants, mini-markets, and department stores

It’s crucial for SMEs to seek financing that aids in their growth.

Reasons they might need financing include:

They have long-term paying clients and projects and need to maintain employee salaries.
They wish to research further for development and gaining a competitive edge in the market.
They need to broaden their outreach with a budget for marketing and branding.
They aim to attract and/or retain talent: cutting-edge technology and facilities can’t replace a team of employees who are not only capable but also willing to work for you.
All this requires an initial investment, and to not just survive but grow your business, you can turn to us for the necessary financial advice. Securing financing can extend your company’s lifespan.