Write 2 page essay on the topic Challanges for The SME’s ( Small and Medium Size Enterprises ).
The annual balance sheet of the organization should not be more than 43 million euros.
Hallberg (2000) further explains that in Europe, different countries have a definition of SMEs. For instance in Germany, an SME must not exceed a limit of more than 255 employees. In Belgium the number of employees must not exceed 100 people. This means that a company that has 255 employees in Belgium would pay taxes at a full rate, but it will qualify for a subsidy in the European Union (Padoan, 2010). In the United States, there is a criteria used in the definition of an SME. This criterion is based on the structure of ownership, the type of industry, the number of employees, and the revenue that the organization gets. In the United States, the cap that limits an organization identified as an SME may be 1500 people, but on most occasions, the cap stands at 500 people (Nummela, 2011).
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