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This report provides an overview of the activities of the European Union (EU) for small and medium-sized enterprises (SMEs) and how the SME dimension has been incorporated within European Community policies and programs. The report describes a broad range of different policies, programs and instruments that all help SMEs, either directly or indirectly. The report's structure corresponds to the areas of the European Charter for Small Enterprises, along with other policy areas not covered by the Charter but relevant for SMEs. Charter areas of activity are: education and training for entrepreneurship; improving business start-up procedures; better legislation and regulation; developing the right skills and competences; improving online access; Internal Market strategy; taxation; financial services; strengthening the technological capacity of SMEs; successful e-business models; and business support services. Other policy areas not covered by the Charter are: competition; employment and social issues; the environment; energy, transport and telecommunications; Structural Funds; and agricultural and rural development. Activities associated with EU enlargement, pre-accession and cooperation with non-Member countries are also covered, for example, internationalisation of SMEs. An overview of the major programs and instruments providing aid for SMEs is given in a summary table, with the participation rates of SMEs in the programs in terms of both their number and the budgetary amounts involved.