Come across the abbreviation SME in connection with a business purchase or sale, and it stands for "small and medium-sized enterprise" — an official EU category, which Denmark follows, and which by far most businesses for sale on the Danish market fall under.

The official definition

The EU's SME definition classifies businesses by number of employees and either revenue or balance sheet total:

  • Micro business: Under 10 employees and under €2 million in annual revenue.
  • Small business: Under 50 employees and under €10 million in annual revenue.
  • Medium-sized business: Under 250 employees and under €50 million in annual revenue.

If a business exceeds these thresholds on both employees and revenue, it's counted as a large business — but that applies to only a small fraction of Danish businesses overall.

How common are SMEs in Denmark?

Around 99% of Denmark's roughly 300,000 businesses are SMEs, and two-thirds of all private-sector employees work at an SME. In practice, that means almost any business you come across for sale — whether it's a webshop, a trades business, or a manufacturing business with a couple of dozen employees — falls into this category.

Why does it matter to you as a buyer or seller?

  • Access to support schemes: Many public and EU-funded business support schemes, loan guarantees and advisory programs are specifically targeted at SMEs.
  • Financing: Banks and investors often have special products and assessment criteria for the SME segment, differing from how large businesses are financed.
  • Realistic expectations: Knowing you're operating within the SME segment helps you set the right expectations for deal complexity, financing options and typical price level.

SME isn't the same as "small business"

It's worth noting that a medium-sized business with up to 249 employees and revenue of up to €50 million (equivalent to several hundred million kroner) still counts as an SME. The category therefore covers a very wide range — from the smallest sole proprietorship to a fairly large, well-established business with many employees.

Frequently asked questions

How many employees can a business have and still be an SME?

Up to 249 employees, combined with annual revenue of at most €50 million — beyond that, the business is counted as a large business.

Are most businesses I find for sale SMEs?

Yes, almost all of them. Around 99% of Danish businesses fall within the SME definition, so by far most businesses for sale — from a small webshop to a medium-sized manufacturing business — belong in this category.

Does SME status matter for how I finance a purchase?

Yes, many banks, investors and public support schemes have specific products and criteria targeted at the SME segment, which can make financing an SME purchase more accessible than for larger deals.

See the current selection of businesses for sale — by far most are SMEs, as described above — or read about how to calculate a business's value, regardless of size.

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