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 ********** Commission has adopted a definition of SMEs which now provides a clear global framework for funding directed towards micro, small and medium-sized enterprises. ***** adopted definition is as follows:

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

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

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

In a smaller economy like New Zeal*****, SMEs are defined ***** companies with no more than 20 employees. However one defines SMEs, they tend to share some characteristics. You won't find them in the ********** 10 percent ***** 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 regional or country basis.

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

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 *****. Partners are enterprises which are ***** independent but which ***** not linked to one a*****her. ***** enterprise is a p*****rtner of another ***** *****: 1) it has a holding of between 25% and less than 50% in the other enterprise; 2) the other enterprise ***** a hold*****g of ***** *****5% and less than 50% in the applicant enterprise; 3) the applicant enterprise does not draw ***** consolidated ***** which include the other enterprise, and is not included ***** consolidation in the accounts of ***** other ***** *****


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