The European Commission (EU) has issued new definitions of micro enterprises and small- and medium-sized enterprises (SMEs) aimed at boosting the competitiveness of Europe's small businesses.
SMEs and micro enterprises are currently defined according to guidelines set out in 1996. The new guidelines, announced in Brussels on 8 May, take account of price and productivity increases and will significantly raise the financial ceilings which help define what category a particular company falls within. The headcount thresholds, however, will remain unchanged.
The changes to the thresholds focus on the maximum turnover and balance sheet totals in each category.
