Chuka Umunna MP: It's time to stop using the term 'SME' [AUDIO]

BusinessZone
Dan Martin
Former editor
BusinessZone.co.uk
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Speaking to the ICAEW's Economica magazine, Labour's shadow business secretary Chuka Umunna explains why he thinks the term 'SME' should be banished when talking about businesses.

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By Cashisreality
13th Mar 2013 12:05

This has long bugged me.  SME is a term used at random, when it is very clearly defined by the European Community.  Most businesses that get called SME are in fact micro enterprises (fewer than 10 employees) by its definition.  Few are more than small (fewer than 50 employees).

I quote from the HMRC web site http://www.hmrc.gov.uk/manuals/cirdmanual/CIRD92800.htm The italics and bold are mine to make it clearer.

DEFINITION OF MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES
ADOPTED BY THE COMMISSION

Article I
Enterprise
An enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This includes, in particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or associations regularly engaged in an economic activity.

Article 2
Staff headcount and financial ceilings determining enterprise categories
    The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding €50 million, and/or an annual balance sheet total not exceeding €43 million.
    Within the SME category, a small enterprise is defined as an enterprise which employs fewer than 50; persons and whose annual turnover and/or annual balance sheet total does not exceed €10 million.
    Within the SME category, a micro enterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed €2 million.
 

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By RobertCraven
13th Mar 2013 17:52

 25,000 reads of the blog... at last a politician is listening. Hurray and who will be next.

Robert

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