What is an SME?
"SME" stands for small and medium-sized enterprises – as defined in EU law: EU recommendation 2003/361
.
The main factors determining whether a company is an SME are:
- number of employees and
- either turnover or balance sheet total.
|
Company category |
Employees |
Turnover |
or |
Balance sheet total |
|
|
Medium-sized |
< 250 |
≤ € 50 m |
≤ € 43 m |
||
|
Small |
< 50 |
≤ € 10 m |
≤ € 10 m |
||
|
Micro |
< 10 |
≤ € 2 m |
≤ € 2 m |
||
These ceilings apply to the figures for individual firms only. A firm which is part of larger grouping may need to include employee/turnover/balance sheet data from that grouping too.
For the details of how this works, see:
-
Guide to EU definition of SME
[2 MB]
- Are you an SME? Take the test
-
Declaring your company to be an SME

What help can SMEs get?
There are 2 broad types of potential benefit for a company if it meets the criteria:
- eligibility for support under many EU business-support programmes targeted specifically at companies of this size: E.g. research funding, competitiveness and innovation funding and similar national support programmes that could otherwise be banned as unfair government support ("state aid" – see block exemption regulation).
- fewer requirements or reduced fees for EU administrative compliance.



