SMEs & entrepreneurship

Small and medium-sized enterprises (SMEs) are the cornerstone of Europe’s economy, making up 99% of all businesses and employing over 88 million people. For SMEs to thrive, they need a stable and predictable regulatory environment. However, the growing burden of complex regulations is holding them back.

Between 2017 and 2022, EU legislators introduced 850 new obligations—adding more than 5,000 pages of legislation—increasing compliance costs and administrative burdens for companies.

A smarter regulatory approach

The EU must put SMEs at the heart of its policymaking by prioritising better regulation. This starts with improving the EU SME Test, as outlined in BusinessEurope’s 2024 SME Test benchmark report.

Beyond regulation, SMEs need faster and easier access to finance, clarity and simplification in SME funding programs, a green transition that empowers rather than overwhelms SMEs and strong support for digital and green skills to drive the twin transition.

To ensure SMEs have a stronger voice in EU policymaking, we urgently call for the appointment of an EU SME Envoy.

Strengthening SMEs across Europe

At BusinessEurope, our mission is to advocate for better conditions that support SME creation, growth, and competitiveness. We actively engage in key European forums, including the SME Envoy Network, the EU SME Assembly, and the SME Intergroup in the European Parliament.

Improving the regulatory environment for SMEs remains our top priority. Since 2022, in partnership with two major SME associations – SMEunited and Eurochambres, we have published the SME Test Benchmark – a report evaluating how effectively the European Commission applies the SME Test and upholds the “Think Small First” principle in policy-making.

The SME Roadshow

In 2023, we launched our flagship initiative, the SME Roadshow – a series of high-level events across the EU that bring together stakeholders to discuss challenges, opportunities, and solutions for SMEs. In close collaboration with our members, we have successfully hosted five SME Roadshows in Helsinki, Rome, The Hague, Berlin, and Strasbourg fostering dialogue between SMEs, policymakers, and industry leaders.

It’s time to make Europe an SME Superpower.