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What Is Below-the-Line Advertising: Definitions, Examples, Marketing Ideas

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Below-the-Line-Advertising

Marketing has always been about not putting your eggs in one basket. Combining is what it’s all about, and finding multiple channels to drive engagement has always been successful. Let’s explore Below-the-Line Advertising; A strategy that lets you monitor results that is safer and can justify the marketing spend.

What Is Below-the-Line Advertising?

Below-the-Line Advertising is a strategy in which products are advertised in media other than radio, television, poster, print, and film formats. The main below the line types of advertising systems include direct mail campaigns, social media marketing, trade shows, catalogs, and targeted search engine marketing. Below the line advertising methods tend to be cheaper and more targeted than bottom-line strategies.

Examples of Below-the-Line Advertising

Targeted online marketing

Businesses can target specific demographics with their advertising campaigns, such as: B. the age of a consumer or the industry of a company. For example, LinkedIn allows marketers to target specific people with sidebar ads based on their job or the groups they belong to on the site.

Direct mail


Corporations are still in direct mail, especially older populations who are not online as often as younger generations. Catalogs and postcards remain popular and effective marketing tools.

Trade fairs and presentations

Companies typically present their products and services through local chambers of commerce. Banks organize mortgage seminars to answer questions about mortgages, interest rates, and home affordability, and to attract new loan customers.


Of course, there isn’t a perfect marketing tool that works every time. Instead, companies typically subscribe to multiple strategies. For example, a company may send out direct mail flyers for an upcoming event that the company is hosting at the local convention center.

Below-the-Line Advertising BTL marketing ideas

Photo booths

Photo booths for events make noise in this current environment with their presence at every event. To promote any event, be it corporate or personal photo booths, it was the right choice. A bit of digitization in photo booths for social bees easily gets the public’s attention. It allows them to enjoy themselves while getting all of the social attention. Photo booths allow attendees to click on an event by following the instructions on the touchscreen. Allows the user to add some filters and section layouts.

Uploading a picture with an event hashtag will instantly give you the impression of your picture while your event is trending on social platforms. Here is a comprehensive guide to all types of photo booths.

Tweets Cafe or Social Cafe

Who doesn’t like surprise gifts? I don’t think anyone will say no to him. Tweet Cafe or Social Cafe can turn your event into a trendsetter on social media platforms and at the same time focus your brand.


It’s a perfect way to attract more audiences by offering surprise gifts. With a simple tweet with an event hashtag and a specific box number, your brand campaign will reach many active users and encourage them to be a part of it. This leads to greater brand reach without geographical boundaries.

The tweet café has its importance in experimental marketing solutions that lead a brand campaign on social platforms to success.

Social mosaic

The social mosaic wall is one of the most effective ways to organize your event on social media. Smartphones always stay at the crime scene. Your event attendees tend to take pictures throughout an event. All of the photos taken at an event can be viewed on a photo mosaic wall that summarizes the entire event for attendees if they missed something.

You can enjoy an event digital album without asking for the photos. Just follow the live updates or use event hashtags to collect pictures of your event on social media platforms.

3D holographic

The 3D hologram fan ensures fun and excitement. A 3D hologram can be displayed without 3D glasses. An event that uses holographic 3D as a BTL activity becomes the talk of the town in no time, while also trending other branded events to follow suit. Holographic 3D is a unique experimental technology solution that allows brands to highlight their product in the most innovative way and allow event attendees to click on it. Make your event scream out loud with your remarkable presence and innovative approach to grabbing audience attention.

Advantages of Below-the-line advertising

Direct contact between customers and brands

BTL’s activities enable direct communication between brands and customers. Direct communication helps customers to understand the product better and to combine both on a personal level. It helps brands understand buying patterns and customer behavior. BTL marketing includes brand activation, mall activation, email marketing, telemarketing, exhibitions, and more.

BTL activities help you achieve your goal and reach your target audience at the same time. BTL activations can lead to even more brand loyalty. Today’s marketers are using interactive technology solutions to leverage their brands. Instagram Hashtag Printers, Social 360 Photo Booth, Tweet Cafe, Photo, and GIF Booths are some of the common practices used by brand activation agencies.

Build brand awareness

BTL activities help marketers spread brand awareness. Help people connect with the brand and explain the benefits of a brand. BTL activations help attract more customers while increasing a brand’s leads. Innovative and creative BTL activities are the preferred marketing strategy for marketers in today’s scenario as it creates a niche for a brand. It helps the brand to highlight its presence in the market.

Reach your target audience

BTL activations help you reach your target audience. When you have your desired goal, you can plan accordingly. Whether you choose to activate a mall, branding, or hashtag printer, you need to know your target audience. BTL activities help you reach the right consumer.

Highlights your brand

BTL’s innovative activities help your brand stay one step ahead of the competition. Millions of brands have sprung up and television is flooded with lots of advertisements. Some brands get lost in the clutter and their message doesn’t get to the audience.

BTL activities offer brands the opportunity to present their products to the target group. It gives brands the platform to clearly communicate their marketing message to their audience. BTL activities help the brand stand out without getting lost in the clutter.

Develop brand credibility

BTL’s activities have increased since experimental marketing solutions came into play. BTL activities offer immediate results and create a positive brand image. It gives the brand the opportunity to present their products to their target audience, which leads to the sale of the product. Helps build a customer-brand relationship. A positive brand image leads to increased sales.

Create an impact on the audience

Compared to traditional marketing measures, BTL activities help to influence the audience more. BTL activities make the brand unforgettable and increase the souvenir value. BTL activities involve the audience and give them the opportunity to interact. Be it a BTL activity, be it activating a mall or exhibitions, or the latest experimental marketing solutions like the hashtag printer or the photobox, it helps the brand to engage the audience while creating a positive and powerful impact on them . .

Let the audience feel your product

You must have found free samples of the products when you visit the market. Gathering and generating evidence is one of the many forms of BTL activities. Sampling is one of the most effective measures in BTL marketing as it introduces your brand to the audience. It gives them an idea of ​​the product, which leads to repeated sales of the product.

Sampling allows customers to touch and feel the product. It is an effective marketing measure to familiarize the consumer with the products. When consumers become familiar with the product, they receive quality assurance that can lead to brand loyalty and help the brand in the long term.

Above-the-line Advertising Vs Below-the-Line Advertising

Above the line, advertising is designed to reach a mass audience. The epitome of BTL marketing is a Super Bowl television advertisement that costs millions of dollars for just seconds of airtime but instantly reaches tens of millions of consumers worldwide. Statistically, a significant percentage of these viewers may not be typical of a company’s target consumer.

In contrast, below-the-line advertising reaches fewer people but is more selective about the audience. In most cases, the bottom line is that advertisers do extensive market research to identify a target niche of buyers who are most likely to buy the products. Once the target audience is identified, below the limit advertising reaches consumers in a more personal and direct way.

A wide network is built above the line compared to below the line, using a proverbial fishing rod through direct mail, personal contacts at trade shows, or paid search engine results that are displayed when consumers enter queries.

Conclusion

BTL’s activities have demonstrated its importance for marketing trends and are now being used by all other brands to beat the competition.

Make your brand more visible and generate more sales through BTL activities. Accelerate your marketing game with the latest trends and ideas from BTL marketing activities with the help of an experienced brand activation agency. It’s time to reach out to your untapped audience in the most innovative way possible.

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What Is BUSINESS CYCLE?- Definition, Internal and External Causes

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BUSINESS-CYCLE

What is Business Cycle?


A business cycle is a cycle of fluctuations in the gross domestic product (GDP) around its long-term natural growth rate.

From a conceptual point of view, the business cycle is the upward and downward movement of GDP (Gross Domestic Product) and refers to the time of expansions and contractions in the level of economic activity (trade fluctuations) around a growth trend of long term.

Business Cycle Stages

Business-Cycle
Business Cycle Diagram

In the diagram above, the straight line in the middle is the constant growth line. The business cycle moves around the line. Below is a more detailed description of each phase of the business cycle:

Expansion


The first phase of the business cycle is expansion. During this phase, positive economic indicators such as employment, income, production, wages, profits, demand and supply of goods and services increase. Debtors tend to pay their debts on time, the speed of the money supply is high, and investments are high. This process will continue as long as economic conditions are favorable for expansion.

Peak

The economy then reaches a saturation point or climax, which is the second stage of the business cycle. Maximum growth limit is reached. Economic indicators have stopped growing and are at their highest level. Prices are at their peak. This phase marks the turning point in the trend of economic growth. Consumers tend to restructure their budgets at this point.

Recession


The recession is the stage that follows the peak phase. The demand for goods and services begins to decline rapidly and steadily in this phase. Producers do not notice the drop in demand immediately and continue to produce, leading to an oversupply in the market. Prices tend to go down. As a result, all positive economic indicators, such as income, production, wages, etc., start to fall.

Depression

Unemployment increases accordingly. Economic growth continues to decline, and since it is below the constant growth line, the stage is called a depression.

Trough

In the depression phase, the economic growth rate turns negative. There is a further decline until factor prices, as well as the demand and supply of goods and services, reach their lowest point. The economy finally bottomed out. It is the negative saturation point of an economy. National income and expenditures are largely depleted.

Recovery

After this phase, the economy is in a recovery phase. At this stage there is a trend reversal and the economy begins to recover from the negative growth rate. Demand starts to rise due to lower prices and, consequently, so does supply. The economy develops a positive attitude towards investment and employment, and increases production.


Employment is starting to rise and due to accumulated cash balances with bankers, loans are also showing positive signs. In this phase, depreciated capital is replaced by producers, which leads to new investments in the production process.

The recovery will continue until the economy returns to sustained growth levels. Complete a full boom and bust business cycle. The extreme points are the high point and the low point.

Who measures the business cycle?

The National Bureau of Economic Research uses quarterly GDP growth rates to determine the phases of the business cycle and also uses monthly economic indicators such as employment, real personal income, industrial production, and retail sales. It takes time to analyze this data, so the NBER will not inform you of the phase until it has started.8 You can check the indicators yourself to see where we are in the business cycle.

Who manages the economic cycle?

The government manages the business cycle. Lawmakers use fiscal policy to influence the economy. They use expansionary fiscal policies if they want to end a recession, and they should use contractionary fiscal policies to prevent the economy from overheating. However, this rarely happens because they are thrown out of office when taxes are raised or popular shows cut.

The central bank of the nation uses monetary policy. It cuts interest rates to end a contraction or bottom out called expansionary monetary policy. The central bank raises interest rates to manage an expansion so that it does not peak. That is a contractionary monetary policy

Causes of business cycles

The cyclical pattern of changes in the economy is caused by many factors combined. There are internal factors within the economy that can cause these changes. And there are also external factors that can lead to an economy boom or bust. Let’s take a look at all the causes of business cycles.

Internal causes of business cycles

These endogenous factors can cause changes in the stages of the business and the economy in general. Let’s take a look at the internal causes of business cycles.

1] Changes in demand

Keynes economists believe that a change in demand causes a change in economic activity. When demand increases in an economy, companies produce more goods to meet the demand.

There is more production, more employment, more income and higher profits. This will lead to an economic boom. However, excessive demand can also lead to inflation.

On the other hand, when demand falls, so does economic activity. This can lead to bankruptcy which, if held for an extended period of time, can even lead to a downturn in the economy.

2] investment fluctuations

Fluctuations in investment, such as fluctuations in demand, are one of the main causes of business cycles. Investments will fluctuate based on many factors, such as the economy’s interest rate, business interests, profit expectations, etc.

An increase in investment will lead to an increase in economic activity and will lead to expansion. A decrease in investment has the opposite effect and can cause a bottom or even a depression. Apply Business ethics.

3] Macroeconomic policy

The monetary and economic policies of a nation will also lead to changes in the phases of an economic cycle. So when monetary policy tries to expand economic activity by encouraging investment, the economy will skyrocket. On the other hand, if taxes or interest rates go up, there will be a slowdown or recession in the economy.

4] Money supply

There is another belief that business cycles are purely monetary phenomena. So changes in the money supply will cause business cycles. An increase in money on the market will lead to growth and expansion.

However, too much money can also cause adverse inflation. And the decrease in the money supply will cause a recession in the economy. Learn financial management!

External causes of business cycles

1] Wars

In times of war and unrest, economic resources are used to make special goods such as weapons, weapons, and other similar war goods. The focus is shifting from consumer goods and capital goods. This will lead to a decrease in income, employment and economic activity. Then the economy will experience a wartime recession.

And later, after the war, the focus will be on rebuilding. It is necessary to rebuild the infrastructure (houses, roads, bridges, etc.). This will help the economy recover if progress is made. Economic activity will increase as effective demand increases.

2] technological shocks

New and exciting technology is always a boom for business. New technologies mean new investments, more jobs and, as a result, higher income and profits. For example, the invention of the modern cell phone was the reason for a huge boom in the telecommunications industry.

3] Natural factors

Natural disasters such as floods, droughts, hurricanes, etc. they can damage crops and seriously damage the agricultural sector. Food shortages will lead to higher prices and high inflation. Capital goods can also experience a decline in demand.

4] population growth

If population growth gets out of control, it could be a problem for the economy. Basically, the total savings of an economy decrease when population growth is greater than economic growth. Then investment will also fall and the economy will experience depression or slowdown.

To get a full understanding of the business cycle, you have to know what business is, the concepts and characteristics

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EARNINGS BEFORE TAX (EBT): Overview, Formular, Importance

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From cutting-edge startups to global giants, all companies must keep an eye on their profitability. If you don’t, your cash flow may run out and your business may run into trouble.


There is a wide range of metrics that are used to measure profitability, but earnings before interest and taxes are probably the most common. In this article, you will find out everything you need to know about EBT, including calculating earnings before interest and taxes.

What is earnings before tax (EBT)?

Earnings Before Tax (EBT) measures the financial performance of a business. It is a calculation of the earnings of a company before taxes. The calculation is based on income fewer expenses without taxes. EBT is an item on a company’s profit and loss account. Shows a company’s profit with the cost of goods sold (COGS), interest, depreciation, general administrative expenses, and other operating expenses deducted from gross sales.

How to get earnings before taxes


Finding out your company’s pre-tax income is pretty easy. Net income before taxes begins with your income for the reporting period, regardless of whether it is a month, a quarter, or a year. Then subtract business expenses that are not taxes. This gives you your company’s EBT or earnings before taxes.

Net income

Gross income is defined as the money you earn during a reporting period. The definition of net income is the amount of money you earn after expenses are deducted. If you don’t run your business for cash, income and expenses include money you owe, not just what you pay or get paid.


For example, let’s say you received $ 240,000 this month but completed jobs worth an additional $ 60,000. His gross monthly income is $ 300,000. If you write $ 30,000 in checks to vendors and you have another $ 10,000 in unpaid bills, your expense will be $ 40,000. The net income formula says your net is $ 260,000.

Income tax expenses

Calculating income tax expense is much easier than calculating income before taxes. An experienced accountant knows many ways to reduce a business tax, sometimes to the point of accomplishing nothing. A common practice in preparing income statements is to use historical data.

For example, suppose your EBT is $ 875,000. Your tax expense should be roughly the same as the last time you had this amount of net income unless something material like the tax law has changed. Declares the expected tax burden as an item in the income statement.

The Income Statement

The income statement calculates your net income for the reporting period based on the net income formula. There are two main approaches: single pass and multiple passes. The difference is how they treat profits and losses that are not part of their regular business.


Single or multiple steps?

For a single-level income statement, add up all your income and earnings, and then add your expenses and losses. Subtract the negative from the positive and you get your net income. The last line above the entry for your tax expense gives you your income before taxes.

A multi-level profit and loss account is more complex:

  • First, subtract the cost of goods sold from your sales income to get the gross profit.
  • Then subtract operating expenses like office supplies and advertising and sales commissions to maintain your bottom line.
  • The next section lists non-operating income and expenses, p. Eg B. Investment earnings, interest expense, and litigation losses. When you separate them, you can more easily see how much revenue your operation, the core of your business, has.
  • Add the sum of the operating and non-operating income to obtain the net income for the period.
  • By simply finishing your calculations before including income tax expense, you will get your net income before taxes.

Profit Before Tax Formula

There are three formulas that can be used to calculate Earnings Before Tax (EBT):

EBT = Sales Revenue – COGS – SG&A – Depreciation and Amortization

EBT = EBIT – Interest Expense

and, EBT = Net Income + Taxes

EBT vs EBIT vs EBITDA

In the world of financial analysis, EBT, EBIT, and EBITDA are often referred to. It’s important to understand the difference between the three metrics, as well as when and why you would consider each of them.

The profit before tax is used to analyze the profitability of a company without the impact of its tax system. This makes companies from different states or countries more comparable, as tax rates can differ significantly across borders. Analysts often prefer to add taxes to net income so that they can compare the apple-to-apple earnings performance of a wide range of companies.

Earnings Before Taxes, Interest and Depreciation

Earnings before interest and taxes (EBIT) are also popular with analysts because they offer an additional level of comparability, namely increased interest expense. While EBT is normalized for taxes, EBIT is normalized for both taxes and interest expense. This means that the capital structure of the company does not affect the evaluation of its profitability.

Earnings Before Interest, Taxes, Depreciation and Amortization

Earnings before interest, taxes, depreciation and amortization (EBITDA) have the most additions and are therefore the furthest from the net result of the three key figures. EBITDA also adds depreciation as it is not a cash expense and therefore has no impact on a company’s cash flow. For more information on EBITDA and cash flow, check out our Ultimate Cash Flow Guide.

EBIT versus EBITDA

There are numerous metrics that you can use to analyze the profitability of a business. Besides EBIT, EBITDA (earnings before interest, taxes, depreciation, and amortization) is another widely used formula. In addition to interest and taxes, depreciation and amortization are removed from the EBITDA equation. This helps companies get a better idea of ​​the profitability of their operating performance.

When calculating the profitability of companies, EBIT and EBITDA often show completely different results. This is because depreciation can make a significant contribution to a company’s bottom line. Since depreciation is not reported in EBITDA, it can lead to a skewed understanding of profitability for companies with a large number of property, plant, and equipment (as these companies are likely to have significant depreciation costs).

Why EBIT is Important to your company

EBIT gives you a measure of the operating profitability of your company. Since costs associated with taxes and interest are not taken into account, EBIT ignores variables such as capital structure and tax burden. There are a few key areas where EBIT is particularly useful:

  • Taxes – This is especially helpful for investors comparing different companies with different tax obligations. For example, a company that recently received a tax exemption appears to be more profitable than one that did not. However, this may not be the case. Measuring earnings before interest and taxes can help clarify the situation.
  • Debt – EBIT can be very useful when analyzing companies in capital-intensive industries. These types of businesses can have numerous properties, plants, and equipment (usually financed with debt), which means that they have high-interest expenses. However, since these fixed assets are important for long-term growth, it helps to have a profitability measure that eliminates debt and the costs associated with it.

EBT as a comparison tool

EBT is crucial as it eliminates the impact of taxes when comparing companies. While American businesses face the same tax rates at the federal level, they face different tax rates at the state level. Because companies in different states may pay different tax rates, EBT allows investors to compare the profitability of similar companies in different tax jurisdictions. EBT is used to calculate key performance indicators.

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Small and Mid-size Enterprise (SME): Definition, Importance, US, And Canadian SMEs

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What are Small and Medium-sized Enterprises (SMEs)?


SMEs or small and medium-sized enterprises are defined differently around the world. The country in which a company operates contains information on the defined size of an SME. The size or categorization of a company as an SME can be based on a number of characteristics depending on the country.

Functions include annual sales, number of employees, number of assets in the company, market capitalization, or any combination of these functions. The United States also defines SMEs differently from one industry to another.

SMEs make up the majority of companies operating around the world. These are usually independent companies with less than 50 employees. However, the maximum number of employees varies from country to country. For most companies, the upper range is 250. In some countries, the total number of employees is 200. The United States defines an SME as one with no more than 500 employees.

Importance of Small and Mid-size Enterprise

Promotes flexibility and innovation


Many processes and technological innovations are attributed to small and medium-sized enterprises (SMEs). Since large companies tend to focus on improving legacy products to produce more volumes and realize overall dimensional economic benefits, these companies are not as flexible as SMEs.

To be successful, SMEs focus on creating new products or services. Therefore, they can adapt more quickly to changing market demands.


Small and Mid-size Enterprise play an important role in shaping a country’s economy. They can be seen as an attractive and huge innovative system. Due to the socially and economically beneficial effects of SMEs, the sector is considered an area of ​​strategic interest in an economy.

Create a more competitive and healthy economy

Small and medium-sized businesses encourage competition in product design, pricing, and efficiency. Without SMEs, large companies would have a monopoly in almost all areas of activity.

Support large companies

Small and Mid-size Enterprise help large companies in some areas of the business where they can best serve. Therefore, SMEs will dissolve immediately. Large companies will be forced to engage in more activities that may not be efficient for these companies. Activities such as the supply of raw materials and the distribution of finished products manufactured by large companies are carried out more efficiently by SMEs.

Governments also recognize the importance of small and medium-sized enterprises. Therefore, they offer regular incentives to SMEs, such as easier access to credit and better tax treatment.

Difference between small, medium, and large businesses

Politics


Due to the myriad levels of management, politics tends to play less of a role in larger organizations than in smaller ones. In small organizations, the owner of the organization may have long-lasting personal relationships with other employees or owners. Husband and wife teams are also common. For a person joining such an organization, it can be difficult to maintain the right relationships without alienating others who also directly influence the leaders.

Structure

Without a doubt, one of the clear differences between small and large organizations is the more bureaucratic and hierarchical structure. Due to the workforce in a large company, they are inherently more hierarchical.

The result is teams that work in silos or don’t understand the nature of the business. However, it also allows employees to specialize in their job description. Whereas in a smaller company, it is easier to interact with the decision-makers as they will probably be located a few feet apart.

In addition, it is also easier to make quick and reactive decisions, such as: B. to answer customer inquiries, giving small businesses an advantage over their larger cousins. Due to its often cautious nature, the larger company often delegates decisions to committees or subcommittees.

While you will have more time and resources to consider an answer, it will also take much longer. Where large companies have an advantage is in their resource capabilities. More employees, sources of income, and available amenities. Therefore, it is much easier for them to direct you to a specific problem.

Finally, the environment can be very different within the two different types. The structure of large companies is often littered with policy manuals, staff introductions, job descriptions, and meetings. In smaller companies, this is usually much more ad hoc. Employees have more freedom to do what they see fit.

Employees

The melting pot that makes up an organization’s roster is always interesting. Different views between large and small companies. Smaller companies tend to have a more diverse workforce, with young and old, different aspirations, etc. While in many large organizations the workforce can begin to take the form of the company itself.

This is the case with many who adopt the culture of the company. Those who think differently can be expelled, leaving an almost standardized and regulated employee. There is also a strong argument that large companies tend to attract those seeking job security. On the contrary, smaller companies attract those who want to work in different areas, and are looking for growth, change our willingness to take risks.

Salary

One aspect that few people disagree with is that larger companies tend to have higher salaries. However, this aspect is recognized by smaller employers, and many combats it by adding advantages, eg. Eg B. private healthcare to make your service packages more substantial.

Culture

One aspect that few people disagree with is that larger companies tend to have higher salaries. However, this aspect is recognized by smaller employers, and many combats it by adding advantages, eg. Eg B. private healthcare to make your service packages more substantial.

Perhaps one of the most obvious differences between the two types of organization is that of culture. For startups, any decision that is made can be dangerous, so they tend to be less risk-averse than larger established companies.

For large companies, a small percentage increase on an existing widget when it is already generating £ 500 million in revenue can make a difference. Therefore, large companies avoid risky decisions. Instead, they prefer to be more conservative and enhance what already exists with their existing customers.

Many large companies are now trying to find a way to maintain a small business mindset regardless of size. They recognize that elements such as long-term planning with an element of risk-taking will benefit them in the medium and long term.

Check out 50 Best Startup Ideas for 2021 including business plan

Small and Mid-size Enterprise SMEs in the U.S.

The United States adheres to different definitions of SMEs and policies, which vary from industry to industry. The practice corresponds to the North American Industry Classification System (NAICS). The system was developed jointly by the United States, Canada, and Mexico to establish a set of guidelines and standards that allow the collection and analysis of operational statistics in North America.

The United States Small Business Administration (SBA) is responsible for establishing a list of standards and characteristics that companies must meet to qualify as SMEs. The list is not specifically directed at SMEs, as it mainly refers to smaller companies.

Most SMEs, however, must comply with all the laws and guidelines on the list, including the requirements and operating rules established by NAICS. This is important, as many small businesses can apply for government contracts and financing, as long as they comply with all required regulations.

The United States also has a specific definition of SMEs based on the industry in which they operate. For example, if a company is part of the manufacturing industry, it can be classified as an SME if it has a maximum of 500 employees, but a company engaged in the wholesale trade can only have 100. There are also differences between branches of industry.

For example, in the mining industry, companies that extract nickel or copper ore can employ up to 1,500 people, while a silver mining company can only employ a maximum of 250 people to qualify as SMEs.

Small and Mid-size Enterprise SMEs in Canada

In Canada, Small and Mid-size enterprises are companies that employ less than 500 people. Companies with 500 or more employees are only considered large companies. Industry Canada, an organization that promotes economic and industry growth in Canada, assumes that small businesses have fewer than 100 employees if the business produces goods. The limit for small businesses that provide services is 49 employees or less. Companies that fall somewhere between these thresholds for the number of employees are considered SMEs.

Another organization, Statistics Canada, which is researching and collecting data on businesses and trade in the country, meets the requirement that SMEs have no more than 499 employees. However, based on the research and data collected, SMEs are also found to have gross sales of less than $50 million.

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