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Small and medium-sized enterprises

Small and medium-sized enterprises (SMEs) are defined by the European Commission as having less than 250 employees. SMEs are the backbone of Europe's economy. They represent 99% of all businesses in the EU. In the past five years, they have created around 85% of new jobs and provided two-thirds of the total private sector employment in the EU. The European Commission considers SMEs and entrepreneurship as key to ensuring economic growth, innovation, job creation, and social integration in the EU. The European Commission policy in relation to SMEs supports start-ups and scale-ups in particular. Internationalisation beyond the EU increases SMEs' performance, enhances competitiveness, and reinforces sustainable growth.

Topic

Recent updates

EU context

Eurofound’s work on small and medium-sized enterprises links in with the Commission’s 2019–2024 priority on promoting our European way of life. 

Key outputs

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Megatrends, such as digitalisation, globalisation, demographic change and climate change, are transforming the world of work, with knock-on effects for working conditions and job quality. Against this background, this report...

5 november 2020
Publication
Research report
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This study examines the interaction between social dialogue practices and human resources management (HRM) policies in European multinational companies (MNCs). It looks at the changing role of HRM and its...

16 június 2020
Publication
Research report

Eurofound expert(s)

​Stavroula Demetriades

Stavroula Demetriades is a senior research manager in the Employment unit at Eurofound. She has responsibility for research in the areas of innovation, management practices, hybrid...

Senior research manager,
Employment research unit
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Franz Eiffe is a research manager in the Working Life unit at Eurofound. He is involved in projects on sustainable work, quantitative analyses and upward convergence in the EU, as...

Research manager,
Working life research unit
Publications results (57)

A munkavállalók képességeik révén járulnak hozzá egy szervezet sikeréhez. A képesség, motiváció, lehetőség (ability, motivation, opportunity, AMO) modell szerint a szervezeti teljesítményhez való munkavállalói hozzájárulás a készségektől, a készségek kihasználására való motiváltságtól és az ehhez

30 March 2023

E jelentés célja támogatni az európai vállalkozásokat a COVID19-világjárvány kihívásainak kezelésében. A hangsúlyt azokra a munkahelyi gyakorlatokra és jellemzőkre helyezi, amelyek segítettek az EU-ban működő vállalkozásoknak a működési ellenállóképesség kialakításában, miközben a munkavállalók és

09 December 2021

The economic and labour market contribution of international businesses is well recognised, but policymakers could do more to help such enterprises to develop their activities. This policy brief explores the workplace practices in export-oriented establishments that may contribute to their success

06 October 2021

The EU has long supported innovation in business and in workplaces. The challenges facing Europe as it emerges from the COVID-19 crisis make the need for innovation more urgent. The NextGenerationEU recovery package requires a reorientation of business activities towards innovation for resilience

01 July 2021

Megatrends, such as digitalisation, globalisation, demographic change and climate change, are transforming the world of work, with knock-on effects for working conditions and job quality. Against this background, this report examines working conditions and job quality from a sectoral perspective

05 November 2020

This study examines the interaction between social dialogue practices and human resources management (HRM) policies in European multinational companies (MNCs). It looks at the changing role of HRM and its interaction with European Works Councils (EWCs), which can act as a link between different

16 June 2020

Innovation and technological advancement are natural features of developed economies, and they are necessary to maintain and improve sustainable competitiveness in an era of globalisation. However, while most innovation tends to be incremental, some has a disruptive effect on production and service

22 January 2020

Cooperatives and social enterprises are recognised for their resilience to cyclical and structural economic changes and their capacity to contribute to local and regional economic development, including social inclusion. In recent years, attention has increasingly focused on their ability to further

12 June 2019

Reshoring – namely the relocation of value chain activities back to the home country or its nearby region – has attracted an increasing interest both among scholars and policymakers. The European Reshoring Monitor is a collaborative project between Eurofound and a consortium of Italian universities

01 April 2019

This report explores the motivations, opportunities and challenges of born globals and small and medium-sized enterprises (SMEs) in integrating and managing their global value chains (GVCs). The study also investigates the role of selected policy measures in supporting SME internationalisation, incl

14 December 2018

Online resources results (25)

Debate begins on flexibility in small firms

At present, Italy's Workers' Statute, which sets out certain employment rights, does not apply to firms with fewer than 15 employees. In January 1999, the Prime Minister, Massimo D'Alema, proposed that - in order to encourage the growth of small firms - the provisions of the Statute, should, as a

Complicated wage systems cause most problems in SMEs

In spring 1998, Finland's TT employers' confederation commissioned a survey into problems relating to collective agreements in small and medium-sized enterprises (SMEs). According to the results - published in August 1998 - wage structures and wage systems are too complicated and inflexible, while

LO concerned about measures promoting self-employment

Contractor, free agent, self-employed, freelancer - there are many names for people selling their competence, skills, services and labour without having an employment contract. Even if Sweden, together with Denmark, has the lowest figures in the EU (8% of the total occupied labour force compared

Breakthrough in union representation in Belgian retail sector

The Organisation for Independent Enterprise (Organisatie voor Zelfstandig Ondernemen), the employers' organisation representing small and medium-sized businesses (SME s), takes part in the consultation process at national and sectoral levels as well as in tripartite decision-making channels. However

Gradual alignment and discount agreements

During the last few months the attention of Italian industrial relations practitioners has been drawn by two new kinds of agreement - "gradual alignment" agreements and so-called "discount agreements". They are quite different, but both deal in a distinct way with the same problem: wage flexibility


Blogs results (3)
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As we leave behind the lockdowns and business disruptions of COVID-19 and enter a ‘new normal’, it is time to talk about how workplaces might be transformed to drive innovation. Some may baulk at this suggestion, as we continue to grapple with the pandemic fallout, but crises have always been a

28 június 2021
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Much of the discussion on the future of work is focused on globalisation and technology, and their impacts on the labour market. However, there is also a growing interest in the business models used by cooperatives and social enterprises, and how they can contribute to a better future of work

15 november 2019
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Europe has gone through significant economic change over the past decade. Businesses have had to manage the challenges posed by the financial crisis, globalisation and a rapidly changing labour market. Eurofound's new report Win-win arrangements: Innovative measures through social dialogue at

3 október 2016

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