Small Business Framework - Research - The Legal Services Board
Small Business Framework - Research - The Legal Services Board
Small Business Framework - Research - The Legal Services Board
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initially"segmented"based"on"sector,"as"with"the"Hong"Kong"example"presented"<br />
earlier"(Table"2.1).""<br />
'<br />
'Table'2.1.'Bolton'Report:'Quantitative'definitions'of'SMEs'<br />
!!<br />
Sector!<br />
Manufacturing!<br />
Construction!<br />
Mining!and!Quarrying!<br />
Wholesale!Trades!<br />
Motor!Trades!<br />
Retailing!<br />
Miscellaneous!<strong>Services</strong>!<br />
Road!Transport!<br />
Catering!<br />
Definition!<br />
Up"to"200"employees""<br />
Up"to"25"employees""<br />
Up"to"25"employees""<br />
Up"to"£200,000"turnover"<br />
Up"to"£100,000"turnover"<br />
Up"to"£50,000"turnover"<br />
Up"to"£50,000"turnover"<br />
Up"to"5"vehicles""<br />
All"excluding"multiples"and"brewery]managed"houses"<br />
Another" milestone" came" in" 1996," when" the" EU" introduced" a" working"<br />
definition"of"SMEs,"subsequently"updated"in"2003"(with"effect"from"2005)."<strong>The</strong>"<br />
EU"definition"separates"the"SME"sector"into"three"specific"categories,"differing"by"<br />
employee"head]count,"turnover"and"balance"sheet"value"(European"Commission"<br />
2005)."<strong>The</strong>"firms"must"also"be"independent"(non]subsidiaries)"where"no"single"<br />
shareholder"controls"more"than"25%"of"the"shares"(Table"2.2)."<br />
<strong>The</strong>" EU" has" not" enforced" the" adoption" of" its" SME" definition" by" member"<br />
states"(European"Commission"2005)."<strong>The</strong>"effect"has"been"the"partial"acceptance"<br />
of"the"definition"across"EU"states."Still,"businesses"which"seek"financial"support"<br />
or" participation" in" EU" SME" programmes" must" match" up" to" the" definition," and"<br />
thus"have"fewer"than"250"employees"and"fall"within"either"the"balance"sheet"or"<br />
turnover"thresholds."""<br />
!<br />
'''''''''''Table'2.2.'European'Union'SME'definition'and'segmentation'<br />
Enterprise!Category" Employment!" Turnover" Balance!Sheet"<br />
Micro!