Standards for the identification of small and micro enterprises

While there still lacks a universally accepted definition, Micro-, Small and Medium Enterprises (MSMEs) are widely recognized for the important contributions they make to sustainable development.

While in China the identification of a company as a micro, small or medium-sized enterprise is subject to variables such as the industry it belongs to, its operating income, its total assets and its number of employees, the European definition and classification of what constitutes an SME is mainly based on staff headcount and financial.

SME definition. Small and medium-sized enterprises (SMEs) represent 99% of all businesses in the EU. The definition of an SME is important for access to finance and EU support programmes targeted specifically at these enterprises.

Nine out of every 10 enterprises is an SME, and SMEs generate two out of every three jobs. SMEs also stimulate an entrepreneurial spirit and innovation throughout the EU and are thus crucial for fostering competitiveness and employment. Given their importance to Europe’s economy, SMEs are a major focus of EU policy.

SMEs in China are defined, according to the Law of the People’s Republic of China on the Promotion of Small and Medium-sized Enterprises (2017) (SME Promotion Law), as companies that “have a relatively small size in personnel and scope of business”1 The standards for classifying small and medium enterprises are formulated

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6 FAQs about [Standards for the identification of small and micro enterprises]

What is a small and medium-sized enterprise (SMEs)?

Small and medium-sized enterprises (SMEs) represent 99% of all businesses in the EU. The definition of an SME is important for access to finance and EU support programmes targeted specifically at these enterprises. What is an SME? Small and medium-sized enterprises (SMEs) are defined in the EU recommendation 2003/361 .

What are the benefits of standards for SMEs?

For small to medium sized enterprises ( SMEs ), standards can help to: Standards make market access easier, in particular for SMEs. They can enhance brand recognition and give customers the guarantee that the technology is tested and reliable. Jens Albens CEO, Nanotron Technologies Ltd, Germany Learn more about the benefits of standards for SMEs

Are SMEs too expensive to implement standards?

It is important that the views of micro, small and medium-sized enterprises (SMEs) are sufficiently considered during the development of standards and that standards aimed at large-scale or mass production are not too costly and complex for SMEs to implement.

How do ISO standards help SMEs?

ISO International Standards help businesses of any size and sector reduce costs, increase productivity and access new markets. For small to medium sized enterprises ( SMEs ), standards can help to: Standards make market access easier, in particular for SMEs.

What criteria should be used for defining a SMEs?

The criteria that are used for defining an SME, both quantitative and qualitative, should be contextualised in the business and economic realm in which the SMEs is examined.

Is there a common definition of small- and medium-sized enterprises?

Even though defining small- and medium-sized enterprises is relevant for many purposes, across sectors and countries, our analysis shows that there is still no widely accepted definition. There is no agreement for a common definition even among institutions and organisations both national and international.

Standards for the identification of small and micro enterprises