Want to get into entrepreneurship? Find out what the differences are between an SME and an SMI.
The law of modernization of the economy of August 4, 2008 classifies companies on the market according to several indicators including their size and their financial weight. What are the characteristics of an SME or SMI? What are the terms of creation? All the explanations.
In 2015, France had 3.8 million SMEs. According to INSEE, are part of the category of small and medium-sized enterprises (SMEs), companies with fewer than 250 employees, an annual turnover of less than 50 million euros or a balance sheet total not exceeding not 43 million euros.
Beyond 250 employees, there are medium-sized companies (ETI) which achieve a turnover of less than 1.5 billion euros, then large companies (GE) with more than 5,000 employees and achieving a turnover exceeding 1.5 billion euros.
SMEs can benefit from many European business support programs such as funding for research, development and innovation.
Small and medium-sized industries (SMIs) include companies that do not exceed certain thresholds set by a country. In France, a company belongs to the PMI category when it employs between 10 and 250 employees and when its turnover is less than 50 million euros.
SMIs are thus distinguished from SMEs by their industrial vocation. Like the latter, they are classified according to their workforce, the amount of their turnover or their balance sheet total.
As with all companies, the creation of an SME or an SMI must be carefully considered. A serious project must be prepared upstream as well as a market study, a business plan and a draft of the technical and legal conditions of the project. The terms and procedures for incorporation then depend on the nature of the activity and its cost. An industrial activity can, for example, generate heavy expenses in terms of equipment and installation.
From a legal point of view, SME-SMIs are generally set up in the form of SARL or SAS. Several formalities are necessary for the creation:
The drafting of the articles of association or the filing of a trademark may require the use of a professional such as a lawyer.
Many aids for business creation, recovery or development of activity, offered by the State and local authorities exist (tax relief, exemptions from social charges, etc.). To find out how to qualify for these schemes, go to the Ministry of Labor website.
