A company that meets (according to European Union criteria) at least two of the following requirements: has fewer than 250 employees, annual sales less than €40 million, and total assets less than €27 million. In addition, no non-SME company can own more than 25% of its capital or voting rights. The criterion for a small enterprise, as opposed to a medium-sized enterprise, is set at below 50 employees, €5 million in revenue, and €2 million in assets. The abbreviation SME is also used in Spanish, although it can be confused with the abbreviation for “inventory turnover period.”
« Back to Glossary IndexSME (Small and Medium-sized Enterprise)
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