Sme Definition Uk 2019

In the uk sections 382 and 465 of the companies act 2006 define a sme for the purpose of accounting requirements.

Sme definition uk 2019. For example the bank of england and the british bankers association bba define smes as those with less than a 25 million annual turnover on their main business account. The uk definition of sme is generally a small or medium sized enterprise with fewer than 250 employees. Small and medium sized enterprises smes represent 99 of all businesses in the eu. Definition of an sme sme stands for small or medium sized enterprise and are businesses that have under a certain number of employees in the uk this is defined as less than 250 employees.

Clark aug 6 2020 this statistic shows the percentage of small and medium enterprises sme in the united kingdom uk. Micro business less than 10 employees and turnover under 2 million. The definition of an sme is important for access to finance and eu support programmes targeted specifically at these enterprises. The uk government adheres to the eu definition of an sme which is.

The average sme with a turnover of less than 25m in the uk makes 8 000 profit per year according to bdrc continental s q2 2019 sme finance monitor report which surveys 4 5000 smes. Bba goes further and narrows this definition to define small businesses as those having less than 1 million or 2 million annual turnover. What is an sme. Smes make up the majority of the uk s workforce and need to meet two of the following three criteria to be defined as an sme.

The eu also defines an sme as a business with fewer than 250 employees a turnover of less than 50 million or a balance sheet total of less than 43 million. However the rest of the uk government does not use this definition. Small and medium enterprises in the uk 2019 by sector published by d. For the purpose of research and development tax relief hmrc define an sme as a business with not more than 500 employees and an annual turnover not exceeding 100 million.

What is an sme. Small and medium sized enterprises smes are defined in the eu recommendation 2003 361. According to this a small company is one that has a turnover of not more than 6 5 million a balance sheet total of not more than 3 26 million and not more than 50 employees.