This definition has a European scope, so it goes beyond the strict national framework of each EU member state.
Small and medium-sized enterprises play an important role in the economy of all countries.Small and medium-sized enterprises play an important role in the economy of all countries. OECD countries typically have between 70% and 90% of employees in this group of companies. The main reasons for their existence are:
They can produce customized products unlike larger companies that focus more on more standardized products.
They serve as an auxiliary network for large bosnia and herzegovina b2b leads corporations. Most large companies contract with smaller companies to perform services or activities that, if included in the larger corporate structure, would increase costs.
There are better productivity practices than working with small businesses, such as cooperatives.
Support for SMEs serves to promote tax increases, positively benefiting the creation of more and new jobs.
Technological advances and the development of the media bring advantages and opportunities to the company. However, they also bring threats. In fact, depending on the sector, the company can become smaller precisely because it does not have access to the new technologies or media that competitors can. In addition, the disappearance of borders thanks to the new global era in which we live allows a distant competitor to get closer to wide media coverage.
SMEs have great assets such as the ability to adapt thanks to their small structure, the ability to specialize everywhere by offering some kind of direct service and, finally, their communication skills. The biggest advantage of SMEs is the ability to quickly change the production structure in case of changes in market demand, which is more difficult in a large company with a large number of employees and capital.
As the founder of an SME, there are a number of legal regulations that serve as a basis for the operation and regulation of our own company, and which we are therefore interested in knowing. The main ones are:
Commercial Code . The statute (in its article 5) defines who is a merchant. In short, they are people (natural persons or legal entities) who “have the legal capacity to conduct business in their own name and as a habitual occupation.” If you want your business to be run through a single company, by reading the code you will be able to see the different companies that exist: a general partnership, a simple limited company, a limited liability company and a public limited company.
Personal Income Tax Law . The law defines who is subject to this tax, who is exempt, what expenses are deductible and which are not. In addition, it refers to the territorial nature of the tax, that is, the tax will fall on those who receive income from services, capital or goods located in the country.
Workers' Statute . The legislation establishes all the rights and obligations of workers and employers, as well as the benefits for workers when they are dismissed or resigned. It also specifies the types of employment contracts that exist and establishes obligations for employers to ensure that all employees have occupational risk insurance, among many other aspects.
SME Law . The regulation defines an SME as: “Any permanent productive unit with human resources, managerial and operational human resources, in the name of a natural or legal person, that carries out organic agricultural activities in industry, commerce, services or on farms.” The regulation also covers all institutions that support SMEs and establishes the Fund for the Development of Micro, Small and Medium Enterprises, to provide financial support to SMEs.
