The recognition of Small Mid-Caps (SMCs) has evolved significantly in recent years. Following a 2022 European Commission studythat highlighted the economic importance of mid-caps, the Commission formally introduced the SMC category in its 2023 SME Relief Package to address the regulatory challenges faced by companies that outgrow SME status. Since then, both the Council and the European Parliament have endorsed the extension of selected SME simplification measures to SMCs through the Omnibus IV package. Most recently, on 9 June 2026, the Council and Parliament reached a provisional agreement supporting a broader definition of SMCs, expanding the European Commission’s proposed definition thresholds from 750 to 1,000 employees and reinforcing the EU’s commitment to reducing regulatory burdens on growing businesses and strengthening Europe’s industrial competitiveness.
Definition and relevance for family businesses
Small Mid-Caps (SMCs): companies with fewer than 1,000 employees (previously 750), annual turnover below €200 million (previously €150 million) or a balance sheet total below €172 million (previously €129 million).
The category is designed to support companies that have outgrown SME status but are not large corporations, allowing them to benefit from selected SME simplification measures and reduced administrative burdens. Eligible SMCs will benefit from selected SME simplification measures under the Omnibus IV package, including reduced administrative and reporting requirements, greater use of digital-by-default procedures and a more proportionate regulatory framework for growing businesses.
EFB and its members have long been at the forefront of advocating for EU recognition of mid-caps. Indeed, EFB was the first organization at the European level to call for the creation of a dedicated category for companies that have outgrown SME status but are not yet large corporations. Over the years, we have consistently promoted the need for a more nuanced business taxonomy that better reflects the diversity of Europe’s business ecosystem and supports the growth ambitions of these companies. The introduction and subsequent expansion of the SMC category therefore represents a major milestone and an important step towards achieving this long-standing objective. We thank our members for their continued support and engagement in bringing this vision closer to reality.