Eu sme definition user guide

Micro-, small- and medium-sized enterprises: definition and scope

WHAT DOES THIS RECOMMENDATION DO?

It sets out the criteria for identifying whether a company is a micro, small or medium-sized enterprise (SME). These different categories, based on the number of a company's employees and its turnover or balance sheet, determine its eligibility for EU and national financial and support programmes. The definitions came into effect on 1 January 2005.

• Definitions:
  • micro enterprise: fewer than 10 employees and an annual turnover (the amount of money taken in a particular period) or balance sheet (a statement of a company's assets and liabilities) below €2 million.
  • small enterprise: fewer than 50 employees and an annual turnover or balance sheet below €10 million.
  • medium-sized enterprise: fewer than 250 employees and annual turnover below €50 million or balance sheet below €43 million.
  • EU and national business support programmes, such as research, competitiveness and innovation funding, which otherwise would not be allowed under EU state aid rules,
  • fewer requirements or reduced costs when complying with EU legislation.

  SMEs represent 99 % of all businesses in the EU. They are the backbone of its economy. They generate 2 out of every 3 jobs. In 2013, over 21 million SMEs provided almost 90 million jobs throughout the EU. They stimulate a sense of entrepreneurship and innovation, helping to foster European competitiveness, economic growth and employment.

  • What is an SME?
  • User guide to the SME definition

  Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (notified under document number C(2003) 1422) (OJ L 124, 20.5.2003, pp. 36–41)