Small to Medium-Sized Businesses

What Does Small to Medium-Sized Businesses Mean?

The term "small to medium-sized businesses" (SMBs) is often used in enterprise analysis and in enterprise technology. A small business typically refers to a business with 99 or fewer employees, where a medium-size business would typically have under 1000 employees.


Techopedia Explains Small to Medium-Sized Businesses

The "small to midsized businesses" (SMBs) indicator is well used in IT for reason. SMBs tend to have radically different operational goals and needs then larger, more established businesses. For example, the cloud needs of a SMBs are more likely to represent a single public cloud or hybrid cloud protocol, where a large company might require multi-cloud operations and much more sophistication in vendor contracts.

That's just one example of how SMBs differ from larger companies.

Key enterprise technologies always take into account business needs by sector and by scale, and so SMBs have become a common shorthand to talk about serving a particular part of the enterprise market.


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Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.