EU Definition of SMEs

The EU defines small and medium-sized enterprises (SMEs) based on their number of employees and financial turnover or balance sheet total. An SME has up to 250 employees, with small businesses having fewer than 50 and micro-enterprises fewer than 10. Additionally, small businesses must have an annual turnover of up to €10 million, while medium-sized enterprises can have up to €50 million. This classification helps the EU support and promote business diversity and economic growth, ensuring that smaller companies gain access to resources and opportunities for development.