SME Performance Review: the Annual Report on European SMEs 2024/2025
Despite ongoing economic headwinds and geopolitical uncertainties, Europe’s 26.1 million SMEs continue to demonstrate remarkable resilience and adaptability. While SME real value added declined slightly in 2024 by -0.2%, the outlook for 2025 is notably more optimistic. A rebound of 1.6% is projected, largely driven by micro-SMEs.
The latest SME Performance Report 2025—a key tool the European Commission uses to monitor and assess countries’ progress in implementing SME policies, including the SME Strategy, Small Business Act, and SME Relief Package—shows that SMEs remain central to Europe’s economy.
The annual report is prepared on a yearly basis by the European Commission to provide a synopsis of the size, structure and importance of SMEs to the European economy and an overview of the past and forecasted performance of SMEs from 2008 to 2025.
This performance underlines the essential role of SMEs in maintaining the stability and dynamism of the EU economy. The number of SMEs is projected to grow steadily by 1.2% annually, showing continued confidence in entrepreneurial activity across Europe.
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