SME Definition
Enterprises qualify as micro, small and medium-sized enterprises (SMEs) if they fulfil the criteria listed below. In addition to the staff headcount ceiling, an enterprise qualifies as an SME if it meets either the turnover ceiling or the balance sheet ceiling, but not necessarily both.
Medium sized:
- Headcount: <250
- Turnover: <= € 50 million or Balance sheet total <= € 43 million
Small:
- Headcount: <50
- Turnover: <= € 10 million or Balance sheet total <= € 10 million
Micro:
- Headcount: <10
- Turnover: <= € 2 million or Balance sheet total <= € 2 million
The SME definition is set in the Commission Recommendation of 6 May 2003 
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This Recommendation concerns all Community policies applied within the European Economic Area in favour of SMEs (Structural Funds, Framework Programme for Research and Development) as well as State Aid, where SMEs can benefit from exemption provisions and higher aid ceilings.
The Recommendation is addressed to the Member States, the European Investment Bank (EIB) and the European Investment Fund (EIF).
