A thorough SME test is a pre-condition for evidence-based policy initiatives that deliver their objectives in a manner that avoids unnecessary or disproportionate burdens on SMEs. As such, the SME test is pivotal to the application of the ‘Think Small First’ principle in policy making and to ensuring an SME-friendly regulatory environment.The SME Test Benchmark 2017 assesses the application of the SME test by the European Commission, also providing constructive criticism and recommendations for improvement.