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 ***** Enterpr*****es. The exact definition of an SME differs from region to region. In Europe, the European Commission has adopted a definition 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:

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

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

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

In a ********** economy like New Zeal*****, SMEs are defined as companies with no more than 20 employees. However one defines SMEs, they tend to sh***** some characteristics. You won't find them in the ********** 10 percent of companies in 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 *****al or country b*****is.

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

***** Enterprises - This is by far the most common type of *****. It applies to all enterprises which are not one of the two other *****s ***** enterprise (partner or linked). An ***** is autonomous if it: 1) does not have a holding of 25% or ***** in another enterprise; 2) is not owned 25% or 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 ***** ***** and is thus ***** a linked enterpr*****e.

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


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