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EUROPEAN REVIEW

ISSUE 15 - Page 11

We have another stab at explaining things European in

Plain English

• 1. social partnership
• 2. Objectives
• 3. Ombudsman
• 4. Single Currency
• 5. Commission
• 6. Agenda 2000
• 7. Council of Ministers
• 8. EUROSTAT
• 9. European Parliament
• 10. Euro-words
• 11. OSCE
• 12. European Bank for Reconstruction and Development
• 13. Court of Auditors

14. S.M.E.s

What do the letters stand for ?

Small and Medium sized Enterprises.

What are they ?

The more plain English expression would be small businesses.

How small is small ?

There are strict definitions of this which are important for deciding which laws and possible subsidies apply. To qualify as an S.M.E. a business must have 250 employees or less.

How big is medium ?

Within the S.M.E. definition there are divisions into medium, small and very small. Medium sized enterprises have 50 to 250 workers, small ones employ 10 to 50 people and very small, also called micro, enterprises have less than 10 employees.

How many of them are there ?

A recent report put the total at 18 million for the EU as a whole, 99.8% of all EU companies.

How important are they to the economy ?

Well, they account for 66% of all jobs and 55% of business turnover in the European Union.

So are they being encouraged ?

The EU wants to stimulate SMEs as it sees them as an engine of employment. It provides seed capital, vets all new legislation for the costs to small business, tries to simplify the tax system and provides training and information.

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