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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 Lapkritis 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 Birželis 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)

Based on information derived from 85 case studies across all EU Member States and other sources, the project outlines the features peculiar to SMEs in their anticipation and management of restructuring, explores the main drivers of change and analyses the factors influencing successful restructuring

13 May 2013

Based on information derived from 85 case studies across all EU Member States and other sources, the project outlines the features peculiar to SMEs in their anticipation and management of restructuring, explores the main drivers of change and analyses the factors influencing successful restructuring

13 May 2013

Self-employment and job creation is a key policy area in Europe and is considered to be an important element in fostering economic growth and employment. The financial and economic crisis has had a negative impact on self-employment andconsequently policy focus has been directed at fostering job

24 January 2012

The current policy and public debate on the overall topic of ‘entrepreneurship’ pays little attention to more specific or emerging forms of entrepreneurship such as one-person enterprises and self-employment, part-time entrepreneurs, parallel and serial entrepreneurs, and business transfer and

21 March 2011

This report presents examples of good practice and effective action in relation to restructuring by companies. The study is based on in-depth company case studies carried out in 25 EU Member States and Norway. It identifies instances where large enterprises have not only respected the minimum

24 May 2009

The report describes the general situation in the EU, and to a lesser extent the USA and New Zealand (one example), broadly with regard to eco-efficiency, eco-design and more sustainable manufacturing. In doing this it provides a snapshot rather than an exhaustive coverage. Case studies are used to

04 February 2009

In the context of global competition, it is increasingly relevant to look at Europe’s economic development in a wider perspective. This report gives an overview of the main industrial relations developments in the European Union, Japan and the US in 2005 and 2006. It charts the similarities and

11 December 2007

This report explains the concept of financial participation and what it means for small and medium-sized enterprises (SMEs). It explores the reasons for introducing financial participation in SMEs, the barriers and challenges that are encountered and also highlights the positive role that financial

01 September 2004

This literature review examines the role of micro and small enterprises in the Bulgarian and Czech economies, looks at employment relations in both countries and surveys evidence from literature and comparisons with the EU.

20 December 2002

The new system of industrial relations started evolving in the early 1990s in Bulgaria. In March 1990, the National Assembly adopted the Law on Collective Labour Dispute Settlement, which laid the foundations of new collective labour relations. The amendments in the Labour Code from 1992 provided

20 December 2002

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 Birželis 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 Lapkritis 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 Spalis 2016

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