5 Most Profitable SME Industries

14 September 2016 3 MIN READ

SMEs are said to be the major drivers of competitiveness and innovation in many economic sectors. Small enterprises not only outnumber large companies but also tend to employ a larger amount of people throughout the globe.

But, what makes these industries profitable? Here is a list of the some of the most profitable SME industries and their average profit margins.

Accounting, Tax Preparation, Bookkeeping and Payroll Services (20.0%)
With low overheads, marketing scale and loyal clients, this industry looks evergreen despite of the changing economy status of the country. Everyone will always need an accountant, no matter how poor or richer the economy gets.

Commercial and Industrial machinery and Equipment Rental and Leasing (17.7%)
World is always going to need machines; drilling machines, construction equipment, electric motors etc, and obviously no one would like to buy them for one time usage. With initial investment and low maintenance costs, these industries also maintain a noticeable profit margin.

Legal Services (16.5%)
Lawyers? They are not very pocket friendly. Just like accounting, legal services like lawyers, notaries and settlement officers also have very low operating costs and also repeat clients.

Freestanding Ambulatory Surgical and Emergency Centers (15%)
If you break a leg, then you will find a way to fix it as soon as possible regardless of the fee charged for the treatment. Services like X-ray, setting broken bones, patients suffering from injuries from accidents etc comes under the section and is among the most profitable medium businesses.

Offices of Real Estate Agents and Brokers (14.8%)
While the profits may largely depend upon the economy of the country but such offices also have very low operating costs. All you need is a license.

Service Industries are majorly considered to be the most profitable of all among the domain. Low overheads and small start-up costs are the major factors that keep their expenditures low, eventually leaving higher profit margins.

About the author

Nidhi Batra

Nidhi Batra is a brand communication specialist at Uneecops. She is an active contributor to SAP Business One community and loves to write on smart and intelligent technology which is redefining business models such as SAP Business One, SAP Cloud, Tableau and Power BI. Having Master’s in English from Delhi University, she follows Gartner and spends her time reading avidly about Artificial Intelligence, SAP HANA, Cloud, DevOps, IoT, robotics and business automation.. Tweets at @nidhi_niya

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