Storey D. J. (1994) is of the view that the SME sector itself is disintegrated into three
components;
Micro enterprises -those with 0-9 employees
Small enterprises-those with 10-99 employees
Medium enterprises-those with 100-499 employees.
An entity does not have public accountability if;
Securities not publicly traded
Not a financial institution
Subsidiary of a listed company can use it if the sub itself is not listed
Publish general purpose financial statements for external users. Examples of external
users include owners who are not involved in managing the business, existing and potential
creditors, and credit rating agencies. SMEs often produce financial statements only for a
specific purpose—the use of owner-managers, or for tax reporting or other non-securities
regulatory filing purposes. (ISAC Foundation Education)