Is it fair to assume that of all the businesses in US, it’s 50% SMEs and 50% large corporations? is there a different split?
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Hi there,
It is not fair to assume this!
First, this isn't really knowledge you would need to know for market sizing (and it indicates you're going about this wrong).
Second, a quick google (and just thinking about this questions critically) shows this split is quite out of the ballpark! Think about the 80/20 rule in business/life and this should make sense (how could large corps like GM, Apple, etc. possibly be 50% of all businesses?)
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You should have strong basis for all your assumptions.
Arbitrary assumptions are not only incorrect (as evidenced from Ian's quick search) - but also received negatively by the interviewers.
Interviewers value a rationale and sound logic in assumptions. Is there a basis for assuming this 50/50 split? If this split on number of companies (in which case it is clearly wrong) or on market value (in which case what is your rationale?)
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