What does SME mean?
SME is the CSDDD company-size term for micro, small, or medium-sized undertakings that are not part of a large group.
SME
A regulatory term referring to a micro, small or a medium-sized undertaking, irrespective of its legal form, that is not part of a large group.
1 official sourcessingle_source
Official definitions by source
CSDDD
Directive (EU) 2024/1760 on corporate sustainability due diligence
a micro, small or a medium-sized undertaking, irrespective of its legal form, that is not part of a large group, as those terms are defined according to Article 3(1), (2), (3) and (7) of Directive 2013/34/EU;
Reference: Article 3, point i
Practical application
This term matters when downstream due-diligence requests, support measures, and proportionality questions involve smaller suppliers or business partners.
Minespider commentary
For Minespider, SME is a supplier-context term that should help companies distinguish smaller business partners from in-scope large-company obligations.
Common confusions
- Assuming the everyday meaning of SME is enough without checking the official source definition.
- Using SME as a loose generic label rather than the narrower meaning used in the source text.
- Confusing SME with a neighboring legal actor or responsibility term without checking how the source allocates obligations.