Why Are SMEs So Critical to the European Economy?

[johnblockbuster]

Small and medium-sized enterprises are the backbone of the European Union economy. According to the European Commission, SMEs make up 99% of all EU businesses and generate more than half of the value added in the non-financial economy.

Their role in employment is even more striking. Data cited by the European Parliament shows that in 2025, roughly 26.1 million SMEs employed over 89.8 million people — close to half of all working EU citizens. This makes SME financial health a systemic issue, not just a sector-specific concern.

[kevin1]

99% of businesses being smes always blows my mind