Sme Definition Ec Recommendation

The main factors determining whether an enterprise is an sme are.

Sme definition ec recommendation. It also applies to the kind. The sme definition as provided in recommendation 2003 361 ec is the structural tool to identify enterprises that are confronted with market failures and particular challenges due to their size and therefore are allowed to receive preferential treatment in public support. 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. Either turnover or balance sheet total.

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. It also applies to the kind. The sme definition therefore applies to all policies programmes and meas ures that the european commission develops and operates for smes. This definition has been widely applied throughout the european union.

The sme definition therefore applies to all policies programmes and meas ures that the european commission develops and operates for smes. What does this recommendation do. In 1996 a recommendation establishing a first common sme definition was adopted by the commission1. Small and medium sized enterprises smes are defined in the eu recommendation 2003 361.

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. What is an sme. 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.