How does ADB define "small and medium-sized enterprises" (SMEs)?

The definition of "small and medium-sized enterprises" (SMEs) by the Asian Development Bank (ADB) is based on the number of employees a business has. ADB categorizes SMEs as businesses with fewer than 500 employees, which encompasses both small and medium-sized businesses effectively. This definition is significant because it aligns with international guidelines that provide a framework for supporting and promoting SMEs, which are critical for economic development, job creation, and innovation in many regions.

The threshold of fewer than 500 employees allows a broader range of businesses, including those that function at an intermediate level, to benefit from various ADB programs and funding opportunities designed to support enterprise growth and sustainability. This inclusive approach helps stimulate economies and fosters entrepreneurial development in various sectors.

In contrast, the other definitions listed would exclude businesses that could otherwise be classified as medium-sized under ADB's standard, thereby limiting the support and resources available to a significant number of enterprises that contribute to economic resilience and job creation.