The SME Definition determines whether a business qualifies as a micro, small or medium-sized enterprise, which directly affects both the level of aid intensity and eligibility itself in many calls. Under Annex I of the GBER regulation, a microenterprise is an entity with fewer than 10 employees and turnover or a balance sheet total of up to EUR 2 million, a small enterprise is an entity with up to 50 employees and EUR 10 million, and a medium-sized enterprise is an entity with up to 250 employees with turnover of up to EUR 50 million or a balance sheet total of up to EUR 43 million. It is essential that the figures are not assessed for the applicant alone: the applicant's numbers are combined with the figures of partner enterprises on a proportional basis and of linked enterprises in full, including connections through natural persons operating in the same market. A business loses or gains SME status only after two consecutive accounting periods in which the limits are exceeded. An incorrect declaration of enterprise size is among the most common reasons for aid being reclaimed.
See also: Aid intensity.
