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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)

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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