Singapore is known for its vibrant economy driven by innovation and entrepreneurship. A significant part of this ecosystem is made up of Small and Medium Enterprises (SMEs), which form over 99% of all local businesses. But what exactly counts as an SME in Singapore?
Official SME Definition
The Singapore government defines an SME as a business that meets either of the following:
- Has not more than 200 employees, or
- Has an annual turnover of no more than S$100 million
This definition is used across many government support schemes, such as EnterpriseSG grants and the Productivity Solutions Grant (PSG).
Micro, Small, and Medium: The Subcategories
While the term “SME” is often used as a blanket label, businesses can be further classified into micro, small, or medium enterprises based on employee count, following broader regional standards:
| Enterprise Type | Employee Count | Annual Revenue |
|---|---|---|
| Micro Enterprise | 1 – 20 | < 1 million |
| Small Enterprise | 21 – 50 | < 20 million |
| Medium Enterprise | 51 – 200 | < $100 million |
It is also likely that micro-SMEs are not registered for GST.
Though not officially codified in Singapore’s laws, this breakdown helps investors, policymakers, and entrepreneurs benchmark business growth and access relevant programs.
Why It Matters
Knowing your SME classification helps you:
- Qualify for the right support schemes
- Plan your scaling strategy
- Benchmark against industry peers
Whether you’re a solopreneur or scaling fast with a growing team, understanding your size category is key to tapping into Singapore’s supportive business ecosystem.
