New factsheet on the status of adoption and implementation across 32 jurisdictions
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Summer may be over, but the pressure on SME finances has not taken a break. So, how easy is it for SMEs to get the financing they need? The European Central Bank’s (ECB) latest Survey on the Access to Finance of Enterprises (SAFE) paints a mixed picture.
In Q2 2026, a net 42% of firms reported higher interest rates on bank loans, up sharply from 26% in Q1. Financing needs also increased slightly, while the picture on loan availability diverged: it improved for large firms (net +4%) but deteriorated for SMEs (net -4%). The result? The overall bank loan financing gap rose to 3%, from 2%.
Geopolitical tensions are not helping either. While 36% of firms are looking for alternative suppliers and 31% are investing in energy efficiency, large firms are generally better equipped to respond. SMEs are less likely to have adopted, or even planned, similar measures.
And cost pressures? Still very much around. Firms expect selling prices to rise by 3.2%, input costs, including energy, by 5.2% and wages by 2.5% over the next 12 months.
With 92% of the 5,087 firms surveyed being SMEs, the message is hard to miss: cheaper input alone will not do the job. SMEs also need financing to remain accessible when they need to invest, adapt, or grow.
The European Commission (EC) has proposed a new European Innovation Act (EIA) aimed at tackling two of the barriers standing in the way of commercial success in Europe. It would:
What does it mean for SMEs, start-ups, and scale-ups? Quite a bit. Public buyers would have to avoid disproportionate size-related barriers in R&D procurement, while smaller innovative businesses would benefit from a 50% reduction in financial guarantees.
The idea is simple: if an innovative SME has a good solution, its size should not be a barrier to competing for a public contract.
Ever wondered where an innovative idea gets tested before it reaches the market?
The EC has adopted a new Charter of Access, a voluntary initiative designed to help companies access Europe’s research and technology infrastructures more easily.
These infrastructures include advanced laboratories, testing facilities, pilot lines and specialised equipment that companies can use to develop, test and validate new technologies. For SMEs, start-ups and scale-ups, access to this infrastructure can be particularly valuable.
The Charter sets out six principles to make access simpler, from improving the visibility of available services and simplifying contracts to providing tailored support and protecting intellectual property.
Learn more about the Charter of Access
The EC has adopted a Communication on the competitiveness of the EU banking sector. It plans to make EU banks more competitive and, crucially, a little less constrained under their own rulebook.
The Communication focuses on three big issues:
The EC aims to make cross-border banking easier, simplify requirements and better reflect the needs of smaller and non-complex institutions.
The next step? A legislative package is expected in early 2027.
Read the banking competitiveness plan
‘Because we want the best of Europe to choose Europe’. This is the rationale behind the EC’s newly completed Scaleup Europe Fund, designed to help Europe’s most promising companies grow faster and compete globally.
The Fund will invest in European scaleups working in critical technologies, including artificial intelligence, quantum, biotechnology and clean technologies. It brings together public and private investors and aims to mobilise €5 billion in capital.
Why is this needed? According to the EC, Europe has no shortage of innovative companies but scaling them up often means looking abroad for funding.
The first investments are expected in the coming weeks.
The EP’s Legal Affairs (JURI) Committee has started shaping the proposed EU Inc., a pan-European corporate framework designed to make it easier for companies to operate across the Single Market.
Members of the EP (MEPs) broadly support making it easier for companies to start, finance and scale across the Single Market. This includes a digital and flexible framework, with standardised company documentation, better access to finance and more attractive employee stock options.
But how many guardrails should this fast lane have? While some MEPs prioritise simplicity and broad access, others want stronger safeguards against fraud, letterbox companies, forum shopping and potential risks to workers, creditors and consumers.
The EC continues to support a sector-agnostic, digital framework, while warning against making EU Inc. too complex before it even gets off the ground.
The EP and the Council aim to finalise the law by the end of 2026, but it remains to be seen whether this timeline is feasible.
On 30 September, at 16:30 CEST, Accountancy Europe, together with Invest Europe, Bpifrance and AECM, is co-organising the ‘Unlocking Investment and Leveraging EU Funding for SMEs’ in-person only event under the Investment for Competitive and Sustainable EU Intergroup.
Speakers include MEP Isabel Benjumea (EPP/Spain), Elena Martines (Cabinet of Commissioner Zaharieva), Paul Gisby (Accountancy Europe), Diana Meyel (Invest Europe), and Christian Dubarry (Bpifrance), with Rebecca Christie (Bruegel) as moderator.
The discussion will explore how private investment and EU funding can work together, whether financing solutions are sufficiently tailored to different types of SMEs, and what policy or regulatory barriers still hinder growth and investment.
Register by sending an email to [email protected].
The Council and the EP have reached a provisional agreement on AGILE, a new €115 million programme supporting SMEs, start-ups and scale-ups developing emerging and disruptive defence technologies.
The programme will focus on four key areas:
The provisional agreement still needs formal approval, with AGILE expected to become operational in early 2027.
At their July informal meeting in Dublin, EU competitiveness ministers discussed how to unlock more financing for European SMEs and support their growth.
The focus was on encouraging institutional investors, such as pension funds and insurers, to take on more risk and channel more capital for innovative companies.
Ministers also highlighted the role of public funding in attracting private investment, as well as the need to accelerate the Savings and Investments Union.
Need a loan to grow but struggling to get the financing? The UK government is expanding its Growth Guarantee Scheme (GGS) to help more SMEs access finance.
The GGS, which provides a 70% government guarantee on commercial loans of up to £2 million, will support an additional £2 billion in SME lending per year by 2028/29. Furthermore, it will:
The changes are expected to help an additional 12,000 SMEs per year, bringing the total number of businesses supported to 20,000 by 2028/29; a 150% increase on current levels.
What does Europe’s tourism strategy look like from the perspective of a small hotel, restaurant or tour operator? As Ireland takes over the Council Presidency, its Minister for Enterprise, Tourism and Employment, Peter Burke has a straightforward message for Europe: tourism policy needs to work for the small businesses that make the sector tick.
With SMEs and micro-enterprises dominating the sector, Burke wants competitiveness and resilience to start with the basics: simpler access to EU support, better financing opportunities and fewer administrative hoops to jump through. A radical idea, perhaps, but one that many small businesses may recognise as long overdue.
For the upcoming EU Sustainable Tourism Strategy, Burke calls for an approach that helps SMEs adapt to digitalisation, sustainability requirements and changing consumer expectations, without turning every small hotel or restaurant into a full-time compliance department.
Better transport, particularly for peripheral and island regions, smarter visitor management and stronger crisis preparedness should also help businesses grow and invest with greater confidence.
And then there is the small matter of finding people. Labour and skills shortages remain a major headache for SMEs across the sector. Burke argues for more apprenticeships, accessible training and closer cooperation between businesses and education providers, particularly to attract younger workers.
The underlying message is clear: if Europe wants a competitive and sustainable tourism sector, it should start by making life a little easier for the SMEs to run it.
Closing on 4 November
Funding for Finnish SMEs to promote and commercialise innovative, market-ready cybersecurity solutions, offering €10,000–€100,000 per project
European Commission
Closing on 9 November
Funding of up to €50,000 for self-employed individuals and SMEs developing or adopting space-enabled green solutions to improve circularity, resource efficiency and environmental monitoring
European Commission
European Commission
Proposal for a regulation on public contracts and concessions
European Commission
EC calls on France to fully transpose the new EU VAT rules for the special SMEs scheme as part of the EC’s July infringements package
CEPS
Questionnaire on ‘Towards better law making and cutting red tape: systematic impact assessments and competitiveness checks throughout the EU legislative process’
