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

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Small and Medium Sized Enterprises

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

SMEs is the abbreviation of Small and *****Sized Enterpr*****es. The exact definition of an SME differs from region to *****. In Europe, the European 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 annual turnover not exceeding 50 million euro (in 1996: 40 million euro), or an *****nual balance-sheet total not exceeding 43 million ***** (in 1996: 27 million euro).

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

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

In a smaller economy like New Zeal*****, SMEs are defined as companies with no more than 20 employees. However one defines SMEs, they tend to share some characteristics. You won't find them in the ********** ***** percent of 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.

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

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

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


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