What is SME?
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According to the Business Promotion Authority, there were 290,000 SMEs in Denmark, with 941,000 full-time employees in 2019. This constituted 2/3 of private sector employees.
What is an SME company?
To fall under the SME company concept, your company must meet specific requirements in terms of employees and turnover. Small and medium-sized enterprises have:
- 10-250 employees
- A turnover of a maximum of 50 million euros
- Or a total balance sheet of a maximum of 43 million euros
You can learn more about the precise distinction between a small and medium-sized enterprise in the EU’s definition below.
EU and SME definition
In small businesses, it looks like this:
- 10-49 employees
- Turnover below 10 million euros
- Total balance below 10 million euros
For medium-sized companies, the criteria are as follows:
- 50-249 employees
- Turnover below 50 million euros
- Total balance below 43 million euros
Find out if your company is an SME
Your company's turnover
The turnover is the figure showing how much your company has sold goods and services in a given period. The figure indicates the company’s total revenue.
You can find the turnover in the company’s annual accounts, where you need to use net turnover.
Your company's total balance
The balance is an overview of the value of assets and liabilities in your company. The total balance is, therefore, the value of assets and liabilities on the year-end date.
You can find your total balance in your annual accounts.
Number of employees
To calculate the number of employees, you cannot just count employees.
Instead, you must calculate how many full-time employees you have in your company. You must increase them in annual work units, which counts one full-time employee per yearly work unit.
If you have part-time employees, they also count. But here, they must be calculated as fractions in an annual work unit to reach your actual number of full-time employees.
Which accounting class does your company belong to?
The size and type of company also significantly impact which accounting class your company belongs to. In Denmark, companies are divided into accounting classes A, B, C, and D – and the different groups make different demands on the annual accounts.
Class A has the fewest requirements for the accounts, while class D is subject to the strictest requirements.
- In accounting class A, there are micro-enterprises with 1-10 employees – typically privately owned sole proprietorships.
- In accounting class B, you will find small businesses.
- In accounting class C, medium-sized and large businesses belong.
- In accounting class D, there are state-owned joint-stock companies and publicly traded companies.
SMV:Green 2.0 - a voucher scheme for your green plan
It is essential to know if your company falls under the designation SME. If it does, there may be financial assistance from SMV:Green 2.0.
SMV:Green 2.0 is a voucher scheme for SMVs. The project makes it possible to apply for financial support for investments or consultancy – and often a combination of both – if your company wants to progress toward a greener transition.
Applications for vouchers open twice a year in the spring and autumn. You can see here which steps your company needs to go through to get SMV:Green 2.0.
Want to know more?
At Acubiz, we help companies with efficient expense management. Please contact us if you want to know more.