Sme Definition Commission Recommendation

The sme definition therefore applies to all policies programmes and meas ures that the european commission develops and operates for smes.

Sme definition commission recommendation. It also applies to the kind. Small and medium sized enterprises smes are defined in the eu recommendation 2003 361. What is an sme. Model declaration commission communication model declaration on the information to the qualification of an enterprise as an sme consolidated version this communication aims to promote the application of commission recommendation 2003 361 ec 1 on the definition of smes which replaces recommendation 96 280 ec of 3 april 1996.

32 of this guide. Small and medium sized enterprises smes represent 99 of all businesses in the eu. One of the main objectives of the sme recom mendation is to ensure that support measures are granted only to those enterprises that gen uinely need them. Commission recommendation 96 280 ec of 3 april 1996 concerning the definition of small and medium sized enterprises 1 was based on the idea that the existence of different definitions at community level and at national level could create inconsistencies.

This definition has been widely applied throughout the european union. The sme criteria are set out in commission recommendation 2003 361 ec and are based on the following factors. To be eligible companies must be established in the european union eu european economic area eea and meet the definition of an sme. Commission commission recommendation of 6 may 2003 concerning the definition of micro small and medium sized enterprises notified under document number c 2003 1422 text with eea relevance 2003 361 ec the commission of the european communities having regard to the treaty establishing the european.

The eu sme definition entered into force on 1 january 2005 contained in a recommendation adopted in 2003 by the commission recommendation 2003 361 ec result of wide ranging discussions between the commission member states business organisations as well as two open consultations on the internet. On 6 may 2003 the commission adopted a new recommendation2 in order to take account of economic developments since 1996 for the complete text see annex ii p.