Skip to main content

SME definition of the European Commission

The European Commission defines micro, small and medium-sized enterprises (SMEs) in the EU Recommendation 2003/361. According to this, SMEs have up to 249 employees and an annual turnover not exceeding € 50 million or a balance sheet total not exceeding € 43 million.

SME thresholds of the EU since 1 January 2005

Enterprise
size
Number of
Employees
and Turnover
in € p.a.
or Balance sheet
total in €r
Micro up to 9   up to 2 million   up to 2 million
Small up to 49   up to 10 million   up to 10 million
Medium-sized up to 249   up to 50 million   up to 43 million
SME overall under 250   up to 50 million   up to 43 million

These threshold values apply to individual enterprises (defined as legal units). If the company is part of a larger enterprise group, the SME status depends on the aggregated values for the entire group.

The EU uses the above mentioned SME definition (including the independence criterion) when deciding about access to funds and EU funding programmes targeted at SMEs.

For statistical/empirical analyses, the EU defines different subgroups of SMEs by their employment and turnover size

  • Micro enterprises: up to 9 employees and up to €2 million turnover p.a.
  • Small enterprises: up to 49 employees and up to €10 million turnover p.a. (excluding micro enterprises)
  • Medium-sized enterprises: up to 249 employees and up to €50 million turnover p.a. (excluding micro and small enterprises).

Due to a lack of corresponding data, EU SME statistics (still) do not consider linkages between SMEs and company groups.

For further information