SME Definition

The SME definition  adopted by the European Commission in its Recommendation of 6 May 2003 (replacing Recommendation 96/280/EC).

« The category of micro, small and medium enterprises (SME) is constituted of enterprises with less than 250 people and with an annual turnover under 50 millions of euros or with an annual balance sheet which doesn’t exceed 43 millions of euros. » Excerpted from the Article 2 of the annex recommendation 2003/361/CE.

This new definition takes into account economic developments since 1996 and reduces the likelihood of its circumvention, particularly with regard to state aid, structural funds and the Research and Development Framework Programme.

The Recommendation of the Commission of 6 May 2003 defines very small, small and medium sized enterprises (SMEs) according to specific criteria.

For more information click here. 

On the EU website dedicated to SMEs, you will find, among other things, information concerning the typology of enterprises (difference between the three categories: autonomous enterprises, partner enterprises and linked enterprises).