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Definition of Micro, Small and Medium-sized Enterprises (SME Definition)
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Last updated: 16.6.2025

The European Commission's SME definition is not a funding program itself, but a recommendation for the uniform delimitation of micro, small and medium-sized enterprises (SMEs). This definition is crucial as it is used in numerous EU and Member State funding programs to determine eligible companies and to set the intensity of aid. Its purpose is to increase the coordination and efficiency of measures for SMEs and to avoid distortions of competition.

Who is the Target Audience?

This section explains who the EU's SME definition is aimed at and what overarching purpose it pursues. It specifies the addressees and the geographical scope to ensure consistent application in European and national policies and funding instruments.

What is the SME Definition?

This section describes the quantitative criteria for defining micro, small and medium-sized enterprises, focusing on employee numbers and financial thresholds. It also explains in detail how companies are classified based on their legal relationships (autonomous, partner or linked enterprises) and how these relationships influence the calculation of the thresholds.

This section presents the fundamental legal document that establishes the SME definition and highlights its significance for EU policies and funding programs. It covers the scope of application and implications for Member States and other key stakeholders.

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Funding Overview

Open Until

Open Until:

Ongoing

Award Channel

Award Channel:

Unknown

Region

Region:

European Union (EU Member States), European Economic Area (EEA)

Funding Provider

Program Level: European Union

Funding Body: European Commission

Additional Partners: European Investment Bank (EIB), European Investment Fund (EIF)

Website: European Commission – Internal Market, Industry, Entrepreneurship and SMEs