the eu sme · pdf filethe eu sme definition. the eu sme definition ... maarit nyman deputy...

European Commission DG Enterprise and Industry October 2012 José Becerra, Thomas Elsner

The EU SME definition


Entered into force on 1 January 2005

Contained in a recommendation adopted in 2003 by the Commission (Recommendation 2003/361/EC)

Result of wide-ranging discussions between the Commission, Member States, business organisations as well as two open consultations on the Internet


Applies to all policies and programmes that the Commission operates for SMEs

Member States are invited to apply it as widely as possible

Taken over in the field of State Aid and EU programmes


Enterprise category

Headcount Annual turnover

or Annual balance

sheet

Medium < 250 ≤ € 50 million

(in 1996: €40 M)

≤ € 43 million

(in 1996: €27 M)

Small < 50 ≤ € 10 million

(in 1996: €7 M)

≤ € 10 million

(in 1996: €5 M)

Micro < 10 ≤ € 2 million

(previously. not defined)

≤ € 2 million

(previously. not defined)


First step: am I an enterprise?

an enterprise = « any entity engaged in an economic activity, irrespective of its legal form »

reflects the terminology of the European Court of Justice


Second step: how to calculate the data of my enterprise?

compulsory to respect staff headcount threshold

only one of the financial thresholds has to be respected (turnover or balance sheet)


Staff headcount covers full time, part-time and seasonal staff

Apprenticeship/vocational training with contract is not counted in the headcount, nor is maternity or parental leave

Is expressed in AWU (Annual Working Unit)

1 employee full time/year = 1 AWU 1 employee 3 months/year = 0,25 AWU


Data to take into account = those of the latest approved accounting period, calculated on an annual basis

If thresholds are exceeded

during the year, enterprise will retain its SME status during two consecutive accounting periods, loss of SME status ( and

vice versa)


Third step : what else do I take into account when calculating my data?

=> relationships you may have with other enterprises

To work out your individual data, you will have to establish whether your enterprise is AUTONOMOUS – PARTNER – LINKED


What is an “autonomous” enterprise?

totally independent enterprise or

holding less than 25% of capital or voting rights in one or more other enterprises (and vice versa) – Art. 3.1

Exceptions in case of certain investors (venture capital companies, business angels etc.) – Art. 3.2


Autonomous enterprise: calculation of data

Use your own staff headcount and financial data to check if thresholds of Art.2 are respected


What are “partner” enterprises?

holding equal or greater than 25% of capital or voting rights in one or more other enterprises (and vice versa) – Art. 3.2

not classified as linked enterprise, i.e. voting rights in other enterprise do not exceed 50%

Special case: no SME if 25% of capital or voting rights controlled by one or more public bodies – Art. 3.4


Partner enterprises: calculation of data

Add to your own data a proportion of the other enterprise’s data

This proportion corresponds to the percentage of shares or voting rights that are held

Ex. 30% shares => add 30% of data


What are “linked” enterprises? (= enterprises which form a GROUP)

An enterprise is LINKED to another when it:

holds a majority of the shareholders’ or members’ voting rights

is entitled to appoint or remove a majority of management body

is able to exercise a dominant influence through contract/provision in the memorandum or articles of association


Linked enterprises: calculation of data

Add to your own data 100% of the data of the enterprise(s) to which you are directly or indirectly linked

(where the data were not already included through consolidation)


Less than 25%

participation by/of the enterprise

Autonomous

Between 25% and 50%

participation by/of the enterprise

Partner

More than 50% participation by/of

the enterprise (or equivalent control)

Linked

TYPE TREATMENT

Use solely the data of the company

100% of the data of the enterprise

+ data of the upstream/downstream

aggregated proportionally

to the participation (one level only)

Use of existing consolidated accounts

or addition of 100% of the data of all

linked enterprises Disclaimer: Simplified presentation ; some specific cases are not described.

Implementation

Art. 9 of Annex to Recommendation

Implementation reports 2006, 2009

External Evaluation in 2012

External Evaluation - scope

Literature review

Statistics

Interviews at EU and Member State level 10 Member States (which represent over two-thirds of the EU enterprise population)

External Evaluation – Results I

Size distribution across time

Headcount ceiling

Financial ceilings

Enterprises of intermediate category

External Evaluation – Results II

International comparisons

Investments by Venture Capital Funds

2-year rule

Partner and Linked enterprises


For more information: http://ec.europa.eu/enterprise/policies/sme/facts-

figures-analysis/sme-definition/index_en.htm

[email protected]

http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm







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European Commission DG Enterprise and Industry Brussels, 26 October 2012 Maarit Nyman

Deputy Head of Unit D.4

Reducing regulatory burden for SMEs

Background

The European Council of June 2011: « the regulatory burden on SMEs needs to be further reduced and where appropriate micro-enterprises should be exempted from certain future regulations or at least subject to lighter regime »

The Report on Minimising Regulatory Burden for SMEs. Adapting EU regulation to the needs of micro-enterprises (COM 2011 803 final).

Main proposals of the Report

Strengthening the SME Test: Introduce the principle of the reversed burden of proof in the Commission's impact assessment procedure.

Screening the acquis to implement the « Think Small First » principle

Involving SMEs better in law-making and in evaluating the progress made (e.g. TOP10 consultation).

Setting up a scoreboard of COM legislative proposals.

Strengthening the SME Test

Better awareness raising and training on how to apply the test

Guidance on how to apply the principle of reversed burden of proof

Building knowledge on SMEs in various policy areas and sectors (SME Performance Review, data sources, studies)

The role of the Impact Assesment Board

Involving SMEs better in law-making

TOP10 public consultation launched on 1 October

Will run until 21 December

To define most burdensome areas of EU legislation or the specific pieces of EU legislation which are considered burdensome

COM to make taylor-made changes to legislative acts identified as burdensome

Scoreboard

To show all exemptions and lighter regimes for SMs and micro companies proposed by the COM

The way they change during the co-decision process and the final outcome

The subsequent implementation by Member States with emphasis on highlighting « gold plating ».

Small Business Act Governance

Network of national SME Envoys

The SME Assembly

Both have a crucial role in evaluating the uptake of the Small Business Act and promoting the exchange of good practices, including in the area of reducing regulatory burden.

Next Steps

Commission is preparing the follow-up to the EU Smart Regulation agenda (December 2012)

No new quantitative targets for burden reduction but a bottom-up approach involving stakeholders closely.

A report on the follow-up of the November 2011 report and the results achieved scheduled for January 2013.

European Commission DG Enterprise and Industry Brussels, 26 October 2012 Maarit Nyman

Deputy Head of Unit D.4

Entrepreneurship2020

Action Plan

Concept

Building on the Small Business Act and its Review

Action and impact-oriented

Timing: adoption by College before year-end

Action Pillars

Improve framework conditions

for entrepreneurs' business activities

for preserving, maintaining, and transmitting existing

entrepreneurial capital

Create a more entrepreneurial Europe - support would-be and new entrepreneurs

Action Pillar 1 Framework Conditions

Facilitating start-ups

Transfers of business

Efficient bankruptcy procedures, second chance for honest bankrupts

Reduction of administrative burden and smart regulation: strengthening of existing efforts

Support new entrepreneurs in initial stages

Improve access to finance

Action Pillar 2 – Create a more entrepreneurial Europe

Fostering entrepreneurial mindsets in education and training

Women, seniors – untapped pools of entrepreneurial potential in Europe

Implementation and governance

Actions: both Commission and national/regional governments

Commission: all DGs playing key role in entrepreneurship support, DG ENTR as lead

Member States: under umbrella of Small Business Act as Commission’s medium-term follow-up of implementation under the Annual Growth Survey and Europe2020

SBA implementation reviews

Thank you for your suggestions

Public consultation closed on 1 October: over 600 replies received

http://ec.europa.eu/enterprise/policies/sme/public-consultation/index_en.htm




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