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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)

The overall unionisation rate of employees in Finland is very high (96.5%). This literature review examines small business in Finland, including issues of collective representation and bargaining, working and employment conditions, arbitration procedures, size and sector considerations. It concludes

20 December 2002

This literature review defines its terms of reference as an introduction. It then examines small business in France, including issues of collective representation and bargaining, working and employment conditions, arbitration procedures, size and sector considerations. It concludes with policy

20 December 2002

Among OECD countries, Japan - together with Italy - has the highest proportion of small and medium sized enterprises (SMEs). According to data published by the Management and Coordination Agency, in the manufacturing sector alone in 1996 were operating 665,540 SMEs - defined as enterprises with less

20 December 2002

According to available data for 1996, micro and small enterprises (this is, enterprises with 1 to 49 employees) account for around 30% of the total US employment, where this share is lower than the EU average (52%). This literature review examines micro and small enterprises in the US economy

20 December 2002

A summary of the most relevant findings to emerge from research and debate activities promoted by the Foundation on employment and the quality of work in small and medium-sized enterprises (SMEs), with a particular focus on micro firms.

17 August 2001

The impact of small and medium sized enterprises (SMEs) on the environment is very significant, but the main goal of their environmental policies is to comply with command and control legislation. Only in these last few years, new policy instruments (economic instruments, voluntary instruments

05 December 2000

This new work explores the difficulties faced by SMEs, focusing on environmental education and training, both academic and vocational, in the following three industrial sectors: Printing; Food and Drink; and Speciality Chemicals.

26 October 2000

Online resources results (25)

Green paper on parental leave receives mixed reception

On 7 December 2000, the Department of Trade and Industry (DTI) published a green paper entitled Work and parents: competitiveness and choice [1], setting out a range of options for helping working parents balance their family and work responsibilities. Its proposals are currently the subject of a

Employee savings schemes reformed

A law to reform France's employee savings schemes was presented to parliament in October-November 2000. There are two parts to the law: the first overhauls the existing company savings scheme and extends it to cover smaller companies; while the second creates a new voluntary longer-term savings

Managing the work-life balance

The Irish social and economic context has changed considerably in recent years. In particular, while the Irish economy was burdened with mass unemployment and poor performance during the 1980s, there has since been very strong economic growth. The expansion of the economy has resulted in continual

White-collar workers' joint committee prioritises training

The National Auxiliary Joint Committee for White-Collar Workers (CPNAE/ANPCB) is the most important sectoral joint committee in Belgium. In addition to its weight in numeric terms, it also covers an unusually wide spectrum of activities, including a significant proportion of the new "emerging"

Working time dominated bargaining in 1999

The reduction of working time drove the collective bargaining process in France during 1999. The number of company-level agreements rose by over 130%, while sector-level bargaining was dominated by the implementation of the 35-hour working week, enabling 4.5 million employees to have their working

How small firms are adjusting to the national minimum wage

The UK's first national minimum wage (NMW) was introduced in April 1999 against the backdrop of immense uncertainty over what its effects might be (UK9904196F [1]). The Labour government aimed to introduce the NMW in such a way that it would bring substantial benefits to low paid workers without

Study examines workplace health, safety and working conditions

In November 1999, the Institute for Health, Safety and Working Conditions (IYASE) presented the results of a study on developments in health, safety and working conditions in Greece over the past 20 years. It finds that there is a considerable shortage of data on workplace-level developments, and

Industrial relations in shipbuilding in Italy

Shipbuilding in Italy presents a fragmented picture in terms of both industrial relations and sectoral structure, with a polarisation between a handful of medium to large companies (with Fincantieri being by far the largest) and many smaller enterprises. At the beginning of 2000, an important issue

Federation of Finnish Enterprises aims to participate in incomes policy negotiations

In June 1999, the Federation of Finnish Enterprises, representing small and medium-sized enterprises (SMEs), was given a mandate by four of its affiliates to participate in national incomes policy negotiations. The organisation thus aims to achieve the status of a central social partner organisation

European employers' organisations forge closer links within social dialogue

On 4 December 1998, a cooperation agreement was signed between the Union of Industrial and Employers Confederations of Europe (UNICE) and the European Association of Craft and Small and Medium-sized Enterprises (UEAPME). UNICE is the main intersectoral European-level organisation representing


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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