FÁS SME Management Development Programme

The SME Definition

(Commission Recommendation 2003/361/EC as published in the Official Journal of the European Union L 124, p. 36 of 20 May 2003)

The below definition is the sole authentic basis for determining the conditions regarding qualification as an SME.

A micro, small, or medium- sized enterprise (SME) is one that:

a.    Has no more than 250 employees (definition includes sole traders)

b.    Has either an annual turnover not exceeding €50,000,000 or an annual balance sheet total not exceeding €43,000,000

c.     Is an independent enterprise.  You are autonomous if;

v  You are totally independent, i.e., you have no participation in other enterprises and no enterprise has a participation in yours

v  You have a holding of less than 25% of the capital or voting rights (whichever is the higher) in one or more mother enterprises and/or outsiders do not have a stake of 24% or more of the capital voting rights (whichever is the higher) in your enterprise

v  If you are autonomous, it means that you are not a partner or linked to another enterprise