engage magazine issue 001 spring \'06 - Page 10

10 ABBREVIATIONS SMEs and BAMEs SMEs BAMEs ...Definition Definition... of Small and Medium-sized Enterprises (SMEs) The Companies Act of 1985 states that a company is “small” if it satisfies at least two of the following criteria: • a turnover of not more than £5.6 million; • a balance sheet total of not more than £2.8 million; • not more than 50 employees A medium sized company must satisfy at least two of the following criteria: • a turnover of not more than £22.8 million; • a balance sheet total of not more than £11.4 million; • not more than 250 employees For statistical purposes, the Department of Trade and Industry usually uses the following definitions: • micro firm: 0 - 9 employees • small firm: 0 - 49 employees (includes micro) • medium firm: 50 - 249 employees • large firm: over 250 employees On 6 May 2003 the Commission adopted a new Recommendation 2003/361/EC regarding the SME definition which will replace Recommendation 96/280/EC from 1 January 2005. The thresholds for the number of employees remain unchanged but changes were made to the financial thresholds. A business that is at least 51% owned, controlled and operated by one or more members from a minority ethnic community. ...Definition of Black, Asian and Minority Ethnic (BAME) enterprises The most frequently used definition is in reference to the ownership of the business i.e., a business that is at least 51% owned, controlled and operated by one or more members from a minority ethnic community. The Advisory Conciliation and Arbitration Service (ACAS), after considering the nature of the minority ethnic small business sector, has included four factors in their definition: • • • • The ownership and management of the business; The ethnic mix of the staff; The produce or service offered; The customer base engage SPRING ISSUE 2006