In February 1996, the EU adopted a single definition of SMEs to be applied across all EU programs and proposals dating from December 31, 1997. The Communication recommended that member states, the European Investment Bank and the European Investment Fund adopt the definitions. However, the communication permits the use of lower threshold figures, if desired. The EU recommended definition for a “micro” business is that it must have a maximum of nine employees. A “small” business must satisfy the following criteria• A maximum number of 49 employees, • A maximum annual turnover of seven million euros, • A maximum annual balance sheet total of five million euros, and • The maximum percentage of 25 percent owned by one, or jointly by several, enterprise(s) not satisfying the same criteria. The EU recommendation states that a “medium-sized” business must satisfy the following criteria • A maximum number of 249 employees • A maximum annual turnover of 40 million euros, • A maximum annual balance sheet total of 27 million euros, and • The maximum percentage of 25 percent owned by one, or jointly by several, enterprise(s) not satisfying the same criteria.
Published in Chapter:
EU E-Business and Innovation Policies for SMEs
Anne Wiggins (London School of Economics and Political Science, UK)
Copyright: © 2008
|Pages: 13
DOI: 10.4018/978-1-59904-857-4.ch011
Abstract
This paper provides an overview of the current UK situation of e-business adoption and implementation, and outlines the primary UK government policies and initiatives that have been introduced since 2000 in order to stimulate e-business adoption and implementation by SMEs. Companies of all sizes that have adopted e-business believe that it contributes to improved performance in four main ways: • The development of new products and services. • The generation of new customers and business channels. • A reduction in costs. • Improved productivity (HM Treasury, 2001c).