SMEs are the backbone of the European business economy, representing 99.8% of all enterprises. This report evaluates their economic performance in 2024 and forecasts their outlook for 2025, focusing on three key metrics: number of enterprises, employment, and value added expressed in constant prices while providing detailed analyses based on size classes, industrial ecosystems, and knowledge and technology intense industries.
In 2024, EU SMEs experienced a minor decline in real value added of -0.2%, but employment increased by 1.1%. Projections for 2025 suggest a recovery with a 1.6% increase in real value added and a 0.9% rise in employment. Over the past years, there has been a general growth trend across all size classes, with micro-SMEs notably exhibiting greater resilience and growth compared to other enterprises. This trend aligns with the performance projections for 2024 and 2025, as micro firms are forecasted to achieve the highest growth rates in both real value added and employment.
Regarding industrial ecosystems, SMEs are expected to maintain their dominance in 'retail', 'construction', and 'tourism', where they account for the majority of employment and real value added. In terms of growth rates, the most substantial increases for both indicators in 2024 and 2025 are anticipated in 'cultural and creative industries', 'digital', and 'tourism' ecosystems. SMEs are also anticipated to improve their performance in both knowledge-intensive and less knowledge-intensive industries. However, they may face challenges in achieving significant growth in high-technology industries, which are critical for competitiveness and innovation. Despite this, their limited share in these industries means that challenges here may have less impact on the broader SME landscape.
A spatial analysis of Member States reveals different patterns among neighbouring economies, with countries such as Croatia, Italy, and Greece experiencing notable employment growth in 2024 and 2025, while Member States like Romania, Poland, and Lithuania anticipate real value added growth in 2025. These regional dynamics underscore the importance of the Single Market as a vital driver for SME growth, offering opportunities for expansion and competitiveness. However, disparities remain in how different countries capitalise on these prospects.
SCHULZE BROCK Paula;
KATSINIS Anastasis;
LAGÜERA GONZÁLEZ Jaime;
DI BELLA Laura;
ODENTHAL Ludger;
HELL Markus;
LOZAR Borut;
SECADES CASINO Berta;
2025-05-21
Publications Office of the European Union
JRC142263
978-92-68-27527-6 (online),
1831-9424 (online),
EUR 40325,
OP KJ-01-25-292-EN-N (online),
https://publications.jrc.ec.europa.eu/repository/handle/JRC142263,
10.2760/7714438 (online),
