Small and Medium-Sized Enterprise Definition

Definition of micro-enterprise, small and medium-sized enterprises adopted by the European Commission

Article 1
Enterprise
An enterprise is considered to be an organisation, regardless of its legal status, that carries out an economic activity. More specifically, enterprises are considered to be those organisations that carry out traditional “craft” activities or other activities individually or as a family, associations of people and other associations that regularly carry out economic activity.

Article 2
The financial limits and contingencies that define enterprise categories.

  1. The category of micro-enterprise, small and medium-sized enterprises (SME) comprises enterprises that employ fewer than 250 employees and whose annual turnover does not exceed 50 million euros or whose overall annual balance does not exceed 43 million euros.
  2. Within the SME category, a small enterprise is defined as an enterprise that employs fewer than 50 people and whose annual turnover or overall annual balance does not exceed 10 million euros.
  3. Within the SME category, a micro-enterprise is defined as an enterprise that employs fewer than 10 people and whose annual turnover or overall annual balance does not exceed 2 million euros.

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