SME - so why is this not a good term to use?

We're all very familiar with the term SME and hardly anyone needs reminding that it stands for Small Medium Enterprise. It's used everyday somewhere or other. Today's article in my paper reported "about 63% of loan applications from SMEs secured a loan" so what's the problem? Of the 4.8 million private sector businesses in the UK what percentage are SMEs? Is it 40% or 60 % or more? Would you believe it's 99.87% and that's the problem as this covers such a huge range of different types of businesses all lumped together in just one heading. Here's the BIS Summary of Private Sector Businesses  

Just about all private sector businesses are SMEs so it's a meaningless term.  A great deal of policy is focused on SMEs - you don't have to look far to see this. But focus is the wrong word because SMEs cover all the way from the 1 person business (74%) up to 249 employees. To make any sense, policy needs to be focussed on a minimum breakdown of solo (1 person), micro (up to 10), small (up to 49) and medium above this as obviously these are very different businesses in many respects. All of our clients are SMEs yet they vary enormously across the size range - just about everything is different, including their needs. This begs the question - does Government or indeed large business understand the difference between the solos, the micros, the small businesses in our economy? If not then this has implications for their successful development. The more focused the policy is then the more likely of course it will be successful but do policy makers really differentiate, do they have a real understanding of a solo business looking for finance, do the statistics break it down - it's doubtful and there's very little sign of this information being published. SME however is such a convenient term so how do we wean ourselves away from something that is meaningless - I would love to know your thoughts and suggestions.