SME Test

SME Test

The SME Test analyses the possible effects of EU legislative proposals on SMEs. By assessing the costs and benefits of policy options, it helps implement the 'Think Small Principle' and improve the business environement.

The SME Test implements the 'Think Small Principle' through:

  • consultation with SMEs and SME representative organisations (SMEs, Envoys, EEN);
  • preliminary assessment of businesses likely to be affected;
  • measurement of the impact on SMEs (cost-benefit analysis);
  • use of mitigating measures, if appropriate.

The European Commission is committed to a systematic and proportionate application of the SME Test in its Impact Assessment Guidelines. The SME Test is presented in the Better Regulation toolbox.

The Commission actively encourages EU countries and other EU institutions to systematically apply the SME Test in the policy-making process.

Supporting documents: