engage magazine issue 002 \\\\\\\'06 - Page 8

8 ABBREVIATIONS SMEs and BAMEs SMEs BAMEs A business that is at least 51% owned, controlled and operated by one or more members from a minority ethnic community. 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. ...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. engage ISSUE TWO 2006