Differences between micro, small and medium-sized enterprises
Posted: Sat Feb 01, 2025 8:21 am
In Spain, 46% of companies are considered small and medium-sized enterprises, 0.2% are classified as large corporations and the rest of the pie is shared among the self-employed, with a 53.8% share. SMEs encompass, as their name suggests, three types of structure: micro-enterprises, small and medium-sized enterprises.
But how is their classification determined?
European regulations establish in Annex I of Commission Regulation 651/2014 where each business is located, according to objective parameters such as the number of employees and the millions of euros it invoices per year.
Microenterprises
They have 1 to 9 employees and a turnover of less than two latvia number data 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 the Ipyme.org report (December 2017), the current registrations of micro-enterprises in Spain accounted for a total of 1,148,456.
Small business
These businesses have between 10 and 49 employees and a turnover of less than 10 million euros . In this case, we could be talking about a lower-level football club or a large family restaurant. The Spanish business sector has up to 149,850 companies of this type.
Well-groomed man with his briefcase
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Medium-sized enterprise
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 lowest number of members among those mentioned above, with 23,357 companies.
It should be noted that the data taken to determine both the number of employees and the company's balance sheets will be those belonging to the last closed financial year and that VAT or indirect taxes have no influence in calculating turnover.
Changes in typology
What if the company has grown in terms of the number of employees or turnover? To change classification, it will not be enough to exceed the margins for one year; two years will be required to be able to corroborate the increase in size.
There may be a case where the size of a company needs to be determined without having yet closed the annual balance sheet. In such a scenario, it would be necessary to make reliable estimates during the financial year in order to determine the status.
But how is their classification determined?
European regulations establish in Annex I of Commission Regulation 651/2014 where each business is located, according to objective parameters such as the number of employees and the millions of euros it invoices per year.
Microenterprises
They have 1 to 9 employees and a turnover of less than two latvia number data 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 the Ipyme.org report (December 2017), the current registrations of micro-enterprises in Spain accounted for a total of 1,148,456.
Small business
These businesses have between 10 and 49 employees and a turnover of less than 10 million euros . In this case, we could be talking about a lower-level football club or a large family restaurant. The Spanish business sector has up to 149,850 companies of this type.
Well-groomed man with his briefcase
You may be interested in: Tips for overcoming a company crisis
Medium-sized enterprise
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 lowest number of members among those mentioned above, with 23,357 companies.
It should be noted that the data taken to determine both the number of employees and the company's balance sheets will be those belonging to the last closed financial year and that VAT or indirect taxes have no influence in calculating turnover.
Changes in typology
What if the company has grown in terms of the number of employees or turnover? To change classification, it will not be enough to exceed the margins for one year; two years will be required to be able to corroborate the increase in size.
There may be a case where the size of a company needs to be determined without having yet closed the annual balance sheet. In such a scenario, it would be necessary to make reliable estimates during the financial year in order to determine the status.