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Small and medium-sized enterprises

Small and medium-sized enterprises (SMEs) are defined by the European Commission as having less than 250 employees. SMEs are the backbone of Europe's economy. They represent 99% of all businesses in the EU. In the past five years, they have created around 85% of new jobs and provided two-thirds of the total private sector employment in the EU. The European Commission considers SMEs and entrepreneurship as key to ensuring economic growth, innovation, job creation, and social integration in the EU. The European Commission policy in relation to SMEs supports start-ups and scale-ups in particular. Internationalisation beyond the EU increases SMEs' performance, enhances competitiveness, and reinforces sustainable growth.

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Recent updates

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Company practices to tackle labour shortages

Explore our digital report summary. This report centres on the recruitment and retention measures that organisations have deployed to address labour shortages, based on 17 case studies in different sectors...

Data story

EU context

Eurofound’s work on small and medium-sized enterprises links in with the Commission’s 2019–2024 priority on promoting our European way of life. 

Key outputs

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Megatrends, such as digitalisation, globalisation, demographic change and climate change, are transforming the world of work, with knock-on effects for working conditions and job quality. Against this background, this report...

5 November 2020
Publication
Research report
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This study examines the interaction between social dialogue practices and human resources management (HRM) policies in European multinational companies (MNCs). It looks at the changing role of HRM and its...

16 June 2020
Publication
Research report

Eurofound expert(s)

​Stavroula Demetriades

Stavroula Demetriades is a senior research manager in the Employment unit at Eurofound. She has responsibility for research in the areas of the green and just transition, social...

Senior research manager,
Employment research unit
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Franz Eiffe is a research manager in the Working Life unit at Eurofound. He is involved in projects on sustainable work, quantitative analyses and upward convergence in the EU, as...

Research manager,
Working life research unit
Publications results (58)

This literature review defines its terms of reference as an introduction. It then examines small business in France, including issues of collective representation and bargaining, working and employment conditions, arbitration procedures, size and sector considerations. It concludes with policy

20 December 2002

The overall unionisation rate of employees in Finland is very high (96.5%). This literature review examines small business in Finland, including issues of collective representation and bargaining, working and employment conditions, arbitration procedures, size and sector considerations. It concludes

20 December 2002

The new system of industrial relations started evolving in the early 1990s in Bulgaria. In March 1990, the National Assembly adopted the Law on Collective Labour Dispute Settlement, which laid the foundations of new collective labour relations. The amendments in the Labour Code from 1992 provided

20 December 2002

This literature review examines the role of micro and small enterprises in the Bulgarian and Czech economies, looks at employment relations in both countries and surveys evidence from literature and comparisons with the EU.

20 December 2002

According to available data for 1996, micro and small enterprises (this is, enterprises with 1 to 49 employees) account for around 30% of the total US employment, where this share is lower than the EU average (52%). This literature review examines micro and small enterprises in the US economy

20 December 2002

A summary of the most relevant findings to emerge from research and debate activities promoted by the Foundation on employment and the quality of work in small and medium-sized enterprises (SMEs), with a particular focus on micro firms.

17 August 2001

The impact of small and medium sized enterprises (SMEs) on the environment is very significant, but the main goal of their environmental policies is to comply with command and control legislation. Only in these last few years, new policy instruments (economic instruments, voluntary instruments

05 December 2000

This new work explores the difficulties faced by SMEs, focusing on environmental education and training, both academic and vocational, in the following three industrial sectors: Printing; Food and Drink; and Speciality Chemicals.

26 October 2000

Online resources results (26)

Company practices to tackle labour shortages

Explore our digital report summary. This report centres on the recruitment and retention measures that organisations have deployed to address labour shortages, based on 17 case studies in different sectors and across 13 Member States.

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Policies to support EU companies affected by the war in Ukraine

As the war in Ukraine has intensified, the cost of food, raw materials and energy prices, already high due to the COVID-19 pandemic, has continued to rise substantially. Ahead of coordinated action at EU level, as agreed by EU energy ministers on 9 September 2022, governments across the EU have

Latvia: Social security implications of favourable tax rate for small businesses

The social partners reacted differently to the government's plans to increase the rate of the special tax for microenterprises, the unions concerned over the lower social protection afforded the workers and employers worried about losing competitiveness due to increased labour costs. In the end, the

United Kingdom: Small Business Act becomes law

The Small Business, Enterprise and Employment Act 2015 puts an end to the use of exclusivity clauses in zero-hours contracts.

Project promotes innovation and employee participation in SMEs

In June 2001, Portugal's Institute for Innovation in Training (INOFOR) assessed a project it had been running on "Paths to innovation", which sought to promote organisational innovation in small and medium-sized enterprises (SMEs). Such innovation is thought to be rare in Portugal. Notable points

Social partners highlight competitiveness and development issues

According to a survey published in March 2001 by the Confindustria employers' confederation, the innovative capacity of small firms in Italy is being hampered by factors such as the rigidity of the labour market, the lack of skilled labour, and a high tax burden. Meanwhile, at a May 2001 conference

The state of trade unionism

Trade unions originally developed in Ireland in response to the spread of industrialisation. Many employers in the early factories used authoritarian methods and working conditions were often extremely poor. Individual workers were unable to resist this exploitation, so they organised collectively

2001 Territorial Employment Pact agreed for Vienna

Since the mid-1990s, the city council, the Labour Market Service (Arbeitsmarktservice, AMS) and social partner organisations have been cooperating to improve the employment situation in Vienna, which had been relatively poor for some years. In the late 1990s, these efforts were translated into a

Union unite against employers' proposals on supplementary pensions

The "industrial relations overhaul" project initiated by France's MEDEF employers' confederation in early 2000 has given rise to a protest movement involving all trade unions in early 2001, including a day of demonstrations on 25 January. At the root of this protest are MEDEF's proposals on

Forced labour compensation scheme faces difficulties

In July 2000, the German parliament passed legislation to provide compensation for those involved in slave and forced labour during the Nazi period. As the result of lengthy negotiations between the governments of the USA, Germany and several eastern European countries, along with representatives of


Blogs results (3)
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As we leave behind the lockdowns and business disruptions of COVID-19 and enter a ‘new normal’, it is time to talk about how workplaces might be transformed to drive innovation. Some may baulk at this suggestion, as we continue to grapple with the pandemic fallout, but crises have always been a crad

28 June 2021
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Much of the discussion on the future of work is focused on globalisation and technology, and their impacts on the labour market. However, there is also a growing interest in the business models used by cooperatives and social enterprises, and how they can contribute to a better future of work. Eurof

15 November 2019
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Europe has gone through significant economic change over the past decade. Businesses have had to manage the challenges posed by the financial crisis, globalisation and a rapidly changing labour market. Eurofound's new report Win-win arrangements: Innovative measures through social dialogue at compan

3 October 2016
Data results (5)

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