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


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Small and Medium Sized Enterprises

Small and Medium-Sized Enterprises (SMEs)

***** is the abbreviation of Small and Medium-Sized Enterprises. The exact definition of an SME differs from region to *****. In Europe, the European Commission has adopted a definition of SMEs which now provides ***** clear global framework for funding directed towards micro, small and medium-sized enterprises. ***** 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 ***** 43 million euro (in 1996: 27 million euro).

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

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

***** ***** ***** an SME distinguished three types of enterprise, according ***** 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 ***** not one of the two other ********** ***** enterprise (partner or linked). An enterprise is autonomous if it: 1) does ***** have a holding of 25% or more in *****nother enterpr*****e; 2) is not owned 25% or m*****e by an enterpr*****e or public body or jo*****tly ***** several linked enterprises ***** ***** bodies, with a few exceptions; 3) does not draw up consolidated accounts and is not included in the accounts of an enterprise ***** *****s up ***** ***** ***** is thus not a l*****ked enterprise.

Partner Enterprises ***** This type represents the situation of enterprises which establish major fin*****cial partnerships with o*****r enterprises, without the one exercising effective direct or indirect control over the o*****r. Partners are enterprises which are ***** independent but which ***** not linked to ***** another. An enterprise is a partner ***** another ***** if: *****) it has a holding of between 25% and less than 50% in the other enterprise; 2) the ***** enterprise has a hold*****g of between *****5% and less ***** 50% in the applicant enterprise; 3) the ***** enterprise does not draw up consolidated accounts which include the other enterprise, ***** is not included by consolidation in the accounts of ***** other ***** *****

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