The acronym PMI indicates the category of Small and Medium Enterprises. The European Commission has taken steps to clarify what an SME is by providing the correct definition of the term with Recommendation n. 2003/361/Ce of 6 May 2003 and applied in Italy in 2005. The recommendation precisely classifies the category of Small and Medium Enterprises and the category of micro enterprises. A definition of these companies is essential to allow the States and the EU to correctly allocate incentives and support to companies.
For further information: “How to finance a small business without banks”
Due to their type, organization and capital, these types of companies behave and have different needs than large companies. The distinction operates on the calculation of three parameters: number of employees, turnover or balance sheet total.
Here is the classification:
- Micro enterprise = Employed < 10 employees - Total turnover or balance sheet ≤ 2 million euros
- Small Business: Employed < 50 Employees - Total Turnover or Balance Sheet ≤ 10 Million Euros
- Medium Enterprise: employed ≤ 250 employees - Turnover ≤ 50 million euros or Total budget ≤ 43 million euros.
Small and medium-sized enterprises must maintain the requirements and the principle of independence with respect to other enterprises.
