SME Performance Review 2024/2025

The SME Performance Review is a key tool the European Commission uses to monitor and assess countries' progress in implementing SME policies, including the SME Strategy, the Small Business Act (SBA), and the SME Relief Package. Emphasising these priorities, the review provides comprehensive information on SME performance in two parts: an annual report on European SMEs and SME country fact sheets.

The annual report, prepared on a yearly basis, provides 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.

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.

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. However, ongoing risks remain, such as the implications of new trade tensions, including recent tariff announcements from the US.