Small and Medium Enterprises (SMEs) are businesses that maintain a limited scale of operations. They are typically categorized based on the number of employees and annual revenue. SMEs play a crucial role in the economy by creating jobs, fostering innovation, and contributing to local communities. These enterprises can vary widely in industry, including sectors like retail, manufacturing, and services. Governments often support SMEs through various programs and incentives, recognizing their importance in driving economic growth and enhancing competition in the market.