As the vital drivers of European economy, SMEs - representing 99.8 % of the total business population - remain central to the Union’s economic health. This report provides a data driven performance overview for 2025 and a forecasting outlook for 2026, focusing on three core pillars: the number of enterprises, employment, and real value added. Special attention is given to the divergent paths of traditional size classes, industrial ecosystems, and knowledge and technology intensive industries. The novelty of this report lies in the expanded range of NACE sections estimated, which is now fully compatible with Eurostat’s Structural Business Statistics dataset. EU SMEs saw real value added grow by 2.5 % in 2025, while employment rose by 1.0 %. This steady trend is forecast to sharpen in 2026, reaching 2.9 % and 1.1 %, respectively. Unlike the fragmented growth patterns of recent years, all size classes are now projected to expand in both indicators. Micro enterprises are the standout performers, spearheading growth in both real value added and employment, whereas small firms and medium sized firms are expected to show more modest growth, falling just short of the pace set by large enterprises. It shall however be noted that 2026 estimates were done prior to the economic tensions arising from the Middle East crises. Within specific industrial ecosystems, SMEs are set to sustain their market dominance, particularly in ‘retail’, ‘construction’, ‘tourism’, ‘textiles’, and ‘proximity, social economy and civil security’, where they represent the majority of employment and real value added. However, the highest growth rates for both 2025 and 2026 are projected in other industrial ecosystems, where the roles of SMEs and large businesses are more balanced. The ‘cultural and creative industries’, ‘digital’, and ‘health’ ecosystems, alongside ‘tourism’ and ‘proximity, social economy and civil security’, are expected to record the most significant increases in both economic indicators. While SMEs are projected to thrive across both knowledge intensive and less knowledge intensive industries, the high technology field remains a challenging frontier. These sectors, though vital for long term innovation, present persistent hurdles. Notably, SME employment in high technology is expected to contract for a second consecutive year. Although a marginal recovery in real value added offers a slight improvement over previous benchmarks, the impact remains negligible compared with 2021 levels. Essentially, because the SME footprint in high technology sectors is currently limited, these specific sectoral headwinds are unlikely to destabilise the broader European SME landscape. Spatial analysis across Member States reveals diverging patterns among neighbouring economies. While Germany, Austria, and Slovenia experienced a mild contraction in employment during 2025, a recovery is anticipated for 2026. Conversely, Poland, the Baltic states, and Sweden are forecast for significant growth in 2026, while Bulgaria, Greece, and Cyprus are anticipated to maintain outstanding growth rates across both years. In terms of real value added, Ireland recorded the highest growth in 2025, with Poland expected to take the lead in 2026. Meanwhile, Czechia and Greece continue to show steady, significant expansion. These national dynamics underscore the importance of adapting Single Market directives, which serve as essential enablers for SME growth.

LAGÜERA GONZÁLEZ Jaime;  KATSINIS Anastasis;  DI BELLA Laura;  SCHULZE BROCK Paula;  ODENTHAL Ludger;  SECADES CASINO Berta;  PEREZ Carina;  LOZAR Borut;  VELAYOS LOPEZ Jimena; 

2026-06-22

Publications Office of the European Union

JRC147223

978-92-68-40927-5 (online),   

1831-9424 (online),   

EUR 40763,    OP KJ-01-26-269-EN-N (online),   

https://publications.jrc.ec.europa.eu/repository/handle/JRC147223,   

10.2760/7582667 (online),