Meaning of Pyme (What is it, Concept and Definition)

What is Pyme:

Pyme (also known as PyME or by the acronym PME) is an acronym that means “ p equena and m ediana and mpresa ”.It refers to a company composed of a small number of workers and a moderate net income volume.

SMEs are free to develop commercial activities in any type of sector or activity, whether it be production, marketing or service provision.

SMEs comprise micro, small and medium Companies operated by a natural or legal person under some form of organization.

These types of companies are made up of professionals with sufficient skills to perform in the areas of finance, marketing, production or services, as well as any other area.

SMEs are important in the economy of a country because they participate in the generation of jobs and contribute to the production on, which is positively reflected in its gross domestic product (GDP).

Thus, because of its size, objective, capacity and need to compete, SMEs also often need some help and protection of the State through the granting of credits or financing, as well as aid in the management, innovation and technological development.

Advantages and disadvantages of SMEs

Advantages of SMEs

• Ability to generate jobs.
• Greater adaptability and flexibility to adapt to new market modalities due to their size.
• Greater involvement of workers, thanks to its proximity to the company.
• Service and personalized service and close to customers.

Disadvantages of SMEs

• Vulnerability before the fluctuations of the economy (devaluations of the currency, for example).
• Limitations in the economic capacity and, consequently, of the capacity to compete.
• Less posibi Quality of expansion.
• State aid unit (financing) to make necessary investments for its growth, personnel and work tools.

SMEs in Mexico

In Mexico, the Undersecretary of Small and Medium Enterprises has the fundamental task of designing and promoting tools and programs for the development, consolidation and creation of micro, small and medium enterprises.

The undersecretary established the classification of companies based on their sector of activity and number of employees through the Law on the development and competitiveness of SMEs.

Size/SectorIndustryCommercial ServicesMicroenterprise1 to 10 employees1 to 10 employees1 to 10 employeesSmall company11 to 50 employees11 30 employees11 to 50 employeesMediana company51 to 250 employees31 to 100 employees51 to 100 employees

In Mexico, there is also the Mexican Observatory of the Pyme, which aims to provide qualitative and quantitative information on the performance of the companies that comprise the group of SMEs.