What are small and medium enterprises?
On 11 March, the Government issued Decree No. 39/2018 / ND-CP detailing some articles of the Law on Support to Small and Medium Enterprises. This Decree clearly stipulates criteria for determining small and medium enterprises.
Criteria for determining small and medium enterprises
Accordingly, the decree stipulates that small and medium enterprises are classified by size including micro enterprises, small enterprises and medium enterprises.
Micro enterprises in the fields of agriculture, forestry, fishery and industry and construction have an average number of laborers participating in social insurance not exceeding 10 persons and total turnover of the year not exceeding 3 billion VND or VND 3 billion.
The average number of laborers participating in social insurance shall not exceed 10 persons and the total turnover of the year shall not exceed 10 billion VND or the total capital source shall not exceed 3 billion VND.
Small enterprises in the fields of agriculture, forestry, fishery and industry and construction have the average number of laborers participating in social insurance not exceeding 100 persons and the total turnover of the year does not exceed 50 billion VND or total capital not exceeding 20 billion, but not a micro enterprise as prescribed.
Small enterprises in the field of trade and services with the average number of laborers participating in social insurance shall not exceed 50 persons and the total turnover of the year shall not exceed VND 100 billion or the total capital source must not exceed VND 50 billion. Not a micro-enterprise according to regulations.
Medium and medium-sized enterprises in the fields of agriculture, forestry, fishery and industry and construction have the average number of laborers participating in social insurance not exceeding 200 persons and the total turnover of the year does not exceed 200 billion VND or total capital not exceeding 100 billion, but not small enterprises, micro enterprises according to regulations.
Medium and medium-sized enterprises in the field of trade and service with the average number of laborers participating in social insurance shall not exceed 100 persons and the total turnover of the year shall not exceed VND 300 billion or the total capital source must not exceed VND 100 billion. It is not a micro enterprise or a small enterprise as defined in this Decree.
Regulation on determining the size of small and medium enterprises
The scope of operation of small- and medium-sized enterprises shall be determined on the basis of the law provisions on the system of economic branches and the provisions of specialized law.
In the case of activities in many areas, small and medium enterprises are identified based on the highest revenue. In cases where the highest turnover is not identified, SMEs are identified based on the most labor-intensive sector.
In order to determine the size of small and medium enterprises, together with the regulation on defining the field of operation of enterprises mentioned above, this Decree has specific provisions on determining the number of employees participating in social insurance. year; determine total capital; determine total revenue; Identify and declare small and medium enterprises.
This is a very important legal regulation for Microfinance Institutions including microfinance VietED to identify its target customers: Where micro, micro enterprise to serve .
