Differences between micro, small and medium enterprises

Differences between micro, small and medium enterprises

But how is their classification determined?

European legislation establishes in Annex I of Commission Regulation 651/2014 where each business is located, according to objective parameters such as the number of workers it has and the millions of euros it invoices each year.

Micro-companies

They have 1 to 9 employees and a turnover of less than two million euros. An example of this type of business could be a family business such as a bakery or the grocery store in your city. According to the latest data provided by Prime.

Small business

For their part, these businesses have between 10 and 49 employees and a turnover that does not exceed 10 million euros. In this case, we could be talking about a football club in lower categories or a large family restaurant. The Spanish business fabric has up to 149,850 companies of this type.

Medium sized company

If the company has between 50 and 250 employees and its turnover is below 50 million euros, we would be talking about the last type of SME, the medium-sized company. This is the one with the smallest number of members among those mentioned above, with 23,357 firms.

It should be noted that the data taken to determine both the number of workers and the balance sheets of the company will be those belonging to the last closed fiscal year and that VAT or indirect taxes have no influence whatsoever on the calculation of turnover.

Changes in typology

What if the company has grown in number of workers or turnover? In order to change the classification, it will not be enough to exceed the margins for one year, but two will be required to corroborate the increase in size.

It could be the case of having to determine the size of a company without having yet closed the annual balance sheet. In this scenario, it would be necessary to make reliable estimates during the financial year in order to determine the status.

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