Essay - Small and Medium Sized Enterprises Small and Medium-sized Enterprises (Smes)...

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Small and Medium Sized Enterprises

Small ***** Medium-Sized Enterprises (SMEs)

***** is the abbreviation of Small and ***** Enterprises. The exact definition of an SME differs from region to region. In Europe, the ********** Commission has adopted a ***** of SMEs which now provides a clear global framework for funding directed towards micro, small and medium-sized enterprises. The adopted definition is as follows:

***** enterprises employ fewer than 250 occupied persons and which have either an *****nual turnover not exceeding 50 million euro (in 1996: 40 million euro), or an annual balance-sheet total not ***** 43 million euro (in 1996: 27 million euro).

***** enterprises ***** fewer ***** 50 ***** persons. ********** annual ***** must ***** exceed to 10 million (in 1996: 7 *****) or an annual ***** *****tal not exceeding to10 million (in 1996: 5 million).

Micro-enterprises employ fewer than 10 occupied persons. Their annual turnover must ***** exceed to 2 million (previously not defined) or an ***** balance-sheet total not exceeding to 2 million (previously not *****).

***** a ********** economy like New Zeal*****, SMEs are defined as companies with no more than 20 employees. However one defines SMEs, they tend ***** share some characteristics. You won't find them in the top 10 percent ***** companies ***** terms of size. They're often run by an owner-operator and are privately held. Many of them target a niche industry sector. And SMEs have traditionally confined their operations to a regional or country basis.

The definition of an SME distinguished three types of enterprise, according to their relationship ***** other enterprise in ***** of holdings of capital or voting rights or the right to exercise a dominant influence.

Autonomous Enterprises - This is by far the most common type of enterpr*****e. It applies to all enterprises which are not one of the two other types of enterprise (partner ***** linked). An ***** is autonomous if it: 1) does ***** have a holding of 25% or ***** in another enterprise; 2) is not owned 25% ***** more by an enterpr*****e or public body or jo*****tly by several linked enterprises ***** public bodies, with a few exceptions; 3) does not draw up consolidated accounts and is not included in the accounts of an enterprise ***** *****s up consolidated ***** and is thus not a ***** enterpr*****e.

Partner Enterprises ***** This type represents the situation of enterprises which establish major f*****ancial partnerships with o*****r enterprises, without the one exercising effective direct ***** indirect control over the other. Partners are enterprises ***** are ***** independent but which are not linked to one another. ***** enterprise is a partner ***** another enterprise *****: 1) it ***** a holding of between 25% and less than 50% in the other ***** 2) the ***** ***** has a ***** of ***** 25% and less ***** 50% ***** the applicant enterprise; 3) the applicant enterprise does not draw up consolidated accounts which include the o*****r enterprise, and is not included by consolidation in the accounts of ***** other ***** or


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