SMEs’ challenges and business environment_news from Eurobarometer 559

In July 2025, a survey conducted by Ipsos European Public Affairs at the request of the European Commission was published. It gathers insights from over 17,000 companies, including 13,000 in the EU-27 (of these, 5% identified as start-ups and 18% as scale-ups) and highlighted the strong ambition among small and medium-sized enterprises and the persistent challenges to their growth.

Important highlight is that a significant number of SMEs have adopted advanced technologies to improve operations. ​In the last year, 46% have implemented cloud computing and big data analytics, while 32% utilized digital technologies for security and cybersecurity. ​

Notable mention is that SMEs are engaging in innovation activities to enhance their offerings. ​25% of SMEs have introduced a new or significantly improved product or service in the past year, while 21% have implemented innovations with environmental benefits.

Regulatory obstacles or administrative burdens remains the top concern. Despite this, SME growth prospects are broadly positive, with nearly half of SMEs having reported increased turnover and employment since 2021.

However, even though 40% of SMEs plan to grow by operating in growing markets, barriers to cross border expansion persist, the most important ones being VAT rules and permits, this being the reason as why 70% of SMEs only operate in their country. Despite these challenges, the survey shows a resilient and forward-looking SME landscape with significant untapped potential.

More:  https://europa.eu/eurobarometer/surveys/detail/3359