Discover how audit firms, especially SMPs, can leverage these tools while maintaining professional judgement, quality and accountability.
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How much does Europe depend on its smaller businesses? Eurostat’s latest article shows just how much.
In 2024, micro and small enterprises made up 99% of EU businesses, employed almost one in two workers and generated 35% of the business economy’s value added. Small in size, hardly small in impact. Here is how the numbers stack up:
And where is the economic weight concentrated? Services account for 64% of enterprises, 53% of employment and 51% of value added. Industry, meanwhile, generates 28% of value added despite representing only 7% of businesses.
The figures tell a story. Micro and small enterprises are the backbone of Europe’s business landscape, supporting almost half of its workforce. Are policymakers giving them the attention and support their contribution deserves?
Found the right candidate abroad? Great. Now comes the paperwork. Hiring a qualified professional from another EU Member State or outside the EU can mean navigating different qualification-recognition procedures.
The EC’s new Fair Labour Mobility Package aims to make this process easier. Among its five legislative proposals are:
But what is in it for SMEs and Small- and Medium-sized Practices (SMPs)? Potentially, easier access to skilled professionals and fewer hurdles when recruiting across borders.
The EC and the European Investment Bank (EIB) Group have launched the European Institutional Investors Pact (EIIP) to channel more long-term institutional capital into European technology companies. The goal? Get more European capital to support European innovation.
The voluntary Pact has two pillars:
Thirteen institutional investors have already expressed their intention to invest in EU-based funds, including the €15 billion European Tech Champions Initiative 2.0 and the €5 billion Scaleup Europe Fund.
Geopolitical disruption is becoming business as usual, but not every business is equally prepared.
A new EC and EIB report finds that 64% of EU firms feel prepared to manage geopolitical risks. That rises to 73% among the largest companies but falls below 50% for SMEs.
The risks are also changing. Between 2023 and 2025, the share of firms reporting raw-material shortages fell from 27% to 8%, while logistics obstacles dropped from 28% to 12%. Meanwhile, 20% now flag regulatory compliance and 18% customs and tariffs as major obstacles. 67% of firms trading with the US and 60% trading with China expect tariffs to remain a long-term issue.
Despite the uncertainty, nearly 90% of EU firms expect exports to remain stable or grow. Could a stronger single market help SMEs keep up?
One size rarely fits all, especially when it comes to business regulation. The EU’s ‘Think Small First’ principle aims to ensure that SMEs are considered when new rules are designed. But how does that translate into practice?
A new European Parliament (EP) study takes a closer look at 224 EC Impact Assessments (IAs) published between 2020 and 2025, examining how well they consider SMEs’ needs and impacts.
The numbers tell a story:
What would make a difference? The study calls for:
The EU aims to make public procurement serve broader strategic goals. But the rules must also work for smaller businesses. That was one of the key questions when the Members of the EP (MEPs) and the EC discussed the Public Procurement Act in the Internal Market and Consumer Protection (IMCO) committee.
Need a refresher on the Act? Get the key details here.
Political groups have different priorities:
Europe’s SMEs are holding up, but are the conditions for growth improving?
The SME United’s Autumn 2026 SME Barometer paints a cautious picture: costs remain high, investment is sluggish, and turnover and orders continue to struggle.
Manufacturing is the sector to watch, with energy costs and competitiveness issues weighing on recovery. There are some brighter signs, as businesses expect orders and turnover to improve in the second half of 2026. Investment in the sector, however, remains weak.
So, what can policymakers do? The report calls for more proportionate regulation, better access to affordable finance for SMEs and economic policies that avoid sudden contractionary effects.
What counts as an SME? Moldova is looking to bring its answer closer to the EU’s, with some significant changes on the table.
Moldovan government has approved a draft law that would double the annual turnover threshold from €25 million to €50 million and the total-assets ceiling from €21.5 million to €43 million.
But higher thresholds are just the start. The draft law would:
The timing is no coincidence. This move is linked to Moldova’s EU accession negotiating position on enterprise and industrial policy. And the EU accession process is moving forward. In October, Moldova opened negotiations on the internal market and competitiveness and inclusive growth, areas that directly affect SMEs.
The UK’s Commercial Payments Bill is one step closer to tackling late payments.
The House of Lords wrapped up its report-stage scrutiny, considering changes on several topics, including payment deadlines and financial penalties for late-payment reporting breaches.
What is next? Third reading is scheduled for 20 October, giving peers one final chance to scrutinise and amend the Bill.
The UK’s Financial Conduct Authority (FCA) investigated whether its regulation makes it harder for smaller businesses to secure funding. The verdict? Regulation is not a major barrier, but some friction remains.
So, what is getting in the way? The FCA wants to:
European Commission
Funding for Finnish SMEs to promote and commercialise innovative, market-ready cybersecurity solutions, offering €10,000–€100,000 per project
European Commission
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
