Determinig the size of thresholds of Small and Medium Enterprises definition

Small and Medium Enterprises (SMEs) play an important role in the economic development of the country. There has been a debate going on regarding the common thresholds in the definition of SMEs. Consensus has not reached yet. The common variables found across the world as regards to the definition of SMEs were employment, value of assets, annual turnover and paid up capital. Many countries across the world spend huge funds for determining appropriate size of SME definition thresholds therefore there was a need to conduct study. This was an exploratory study where secondary data sources of data were used. The study was qualitative due to its nature of the research problem. This study found that determinants of size of SME definition thresholds are variation in the state of development, population size, economic problems, strength of each business and industry, level of economic internationalization, government and non-government supported SME programs and institutional policy objectives.