SME support
SME Definition (Procurement Act 2023)
Quick answer
An SME under the Procurement Act 2023 has fewer than 250 staff and turnover ≤ £44m or balance sheet ≤ £38m (Sections 354–356). Check linked undertakings when counting group size.
Last updated: 18 May 2026
Why the definition matters
Central government tracks SME spend via SME spending targets (PPN 001). Buyers may favour SME participation in frameworks and lots.
Practical checks
- Include all linked enterprises in headcount and turnover tests
- Subsidiaries can push you above SME thresholds unexpectedly
- VCSEs have separate treatment; see VCSE
Common questions
What is Sme Definition Procurement Act?
Under Sections 354–356 of the Procurement Act 2023, an SME has fewer than 250 staff and turnover not more than £44m or a balance sheet total not more than £38m. The definition drives SME reporting and policy treatment.
Is this still current after February 2025?
Yes under the Procurement Act 2023.