SMALL AND MEDIUM ENTERPRISE DEFINITION

Abstract

SMEs are usually companies up to 250 employees and annual turnover up to 50 million euros. Even though their importance has been neglected in the past, still, in the past few decades, it has been increasing. Their crucial importance in the local and regional development of the economy cannot be ignored. SMEs are the main source of employees and the main innovation and entrepreneurship force. Because of this, even more politicians and authorities make efforts to ease the business for SMEs and give them bigger rights in the private sector. Lately, SMEs have been considered as accelerators of the economic growth and development, which is a primate they should proudly represent.