class 9: SME

Small and Medium-Sized Enterprises (SMEs)

  • Definition: SMEs are typical private business forms, varying by employee count and/or revenue.

  • Size categories influenced by legal definitions and access to financial support.

  • Corporate sustainability generally associated with larger firms (incorporated businesses).

Small Business Criteria

  • U.S.: < 500 employees, revenues up to $41.5 million.

  • EU: < 50 employees, revenues < €10 million.

  • China: Manufacturing < 300 employees, services < 100 employees.

  • UK: < 50 employees, < £10 million turnover.

Medium Business Criteria

  • U.S.: 100-999 employees, revenue up to $250 million.

  • EU: < 250 employees, < €50 million.

  • Other regions include specific employee and revenue thresholds.

Large Business Criteria

  • U.S.: 500+ employees, revenue typically $250 million and up.

  • Criteria similar across regions, with varying employee counts.

Taylor Guitars Case Study

  • Highlights importance of quality materials (e.g. ebony) in production.

MNC vs. SME Sustainability and Responsibility

Motivation

  • MNCs: External orientation driven by stakeholder demands.

  • SMEs: Internal orientation, emphasizing ethical leadership values.

Communication

  • MNCs: Explicit communication via formal reports and branding.

  • SMEs: Implicit communication based on personal ethics and culture.

Operations

  • MNCs: Transactional, formal, global impact focus.

  • SMEs: Relational, informal, local impact focus.

Organizing

  • MNCs: Formal structure and costly sustainability measures.

  • SMEs: Informal structure, low-cost sustainability efforts.

Stakeholder Scope

  • MNCs: Focus on shareholders and contractual relationships.

  • SMEs: Emphasis on personal relationships with local stakeholders and the community.