We've been getting quite a few questions lately about the number of small businesses in the European Union (EU).  The quick answer is 25 million.  Also, European SMEs employ roughly 95 million Europeans (53% of the EU's workforce) and generate about half of the EU's private industry sales.

Read on for the longer answer.

The EU defines small businesses slightly differently than the US SBA does.  Their categories are:

• Small and medium sized businesses have less than 250 employees and less than 50 million euros in annual turnover (sales). 
• Small businesses have less than 50 employees and less than 10 million euros in annual turnover.
• Micro businesses have less than 10 employees and less than 2 million euros in annual turnover.

If a company exceeds a limit, it is counted in the next higher bracket,  For example, if a company has 4 employees and 5 million euros in turnover, it is counted as a small business not a micro business. 

The US SBA defines small and medium sized businesses as having less than 500 employees.  The SBA does not use sales in their definition. 

According to the European Commission there are 25 million small and medium sized businesses in the EU and they employ 95 million Europeans.   This is roughly 53% of the EU's workforce.  Over 90% of these businesses are micro businesses and the average company in Europe has 5 employees.

For more information on small business in Europe and EU small business policies, see the European Commission's SME portal.