Innovation in the Legal Regulation of Small (Medium) Enterprises in the EU Law

Authors

DOI:

https://doi.org/10.15407/scine21.01.035

Keywords:

small (medium-sized) enterprises, entrepreneurship rights, labor rights, Horizon Europe framework program

Abstract

Introduction. Small (medium) enterprises (SMEs) are fundamental participants in economic relations within the European Union (EU). Consequently, their legal status has been continually refined to address functional challenges. At present, SMEs are classified as a unique economic and legal category that may be designated to any business entity meeting specified criteria.
Problem Statement. The criteria distinguishing SMEs from other business forms — primarily maximum employee count, accumulated financial resources, and annual turnover — have been found insufficient to effectively distinguish SMEs from larger companies seeking preferential status.
Purpose. This study aims to propose enhancements to the existing normative framework defining SMEs, establishing a foundation for a more effective, future-oriented legal regulation of SME status within EU law.
Materials and Methods. The study examines the normative framework defining SMEs and applies formallogical methods, including analysis and interpretation of scientific, regulatory, and economic categories. Methods of modeling, deduction, induction, and comparison have also been employed.

Results. The study has analyzed the primary stages of development and effectiveness of the normative concept of SMEs in EU law. Recommendations for enhancing the innovativeness of current regulatory mechanisms have been developed. An additional criterion — engagement in commercial economic activity — has been justified as essential. Further, the study substantiates the potential benefits of replacing the SME status with a distinct, temporary organizational-legal form.
Conclusions. The current regulatory framework for SMEs within EU law requires refinement. The proposed recommendations are supported by their potential to address existing regulatory challenges related to SME status effectively.

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References

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Published

2025-01-25

How to Cite

DAVYDIUK, O., SHOVKOPLIAS, G., USATYI, V., IVANOVA, H., BYTIAK, O., & DUIUNOVA, T. (2025). Innovation in the Legal Regulation of Small (Medium) Enterprises in the EU Law. Science and Innovation, 21(1), 35–49. https://doi.org/10.15407/scine21.01.035

Issue

Section

General Questions on Modern Scientific, Technical and Innovation Policy