SME Definition in Horizon Europe
The definition of a Small and Medium-sized Enterprise (SME) in Horizon Europe is provided by the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. This definition also applies to Horizon 2020.
According to the EU Recommendation 2003/361, an enterprise qualifies as an SME if it meets the following criteria:
- Fewer than 250 employees, and
- Either:
- Annual turnover not exceeding €50 million, or
- Balance sheet total not exceeding €43 million
SMEs make up 99% of all businesses in the EU, and the SME definition plays a key role in determining eligibility for EU funding and support programmes specifically designed for smaller enterprises.
Key Criteria for SME Classification
Two main factors determine SME status:
- Staff Headcount
- Financial Thresholds:
- Annual turnover, or
- Balance sheet total
⚠️ Important: If a company is part of a larger corporate group, it may need to include the relevant data from the entire group (e.g., headcount, turnover, balance sheet) when assessing SME status.
Additional Resources
To better understand and assess your organization’s SME status, the following tools and documents are available:
- Revised User Guide to the SME Definition (2020)
A comprehensive guide explaining the SME criteria with practical examples. - Declaration Form
Available in all EU languages as an annex to the revised user guide, this form allows enterprises to formally declare their SME status. - SME Self-Assessment Tool
An interactive tool to help you determine whether your organization qualifies as an SME.
For official information and the latest updates, visit the European Commission’s website.
