The European Commission has launched a new strategy to help small and medium-sized enterprises (SMEs), startups, and scale-ups unlock the full potential of the Single Market.

The Single Market is Europe’s shared economic space for innovation and trade, home to 450 million people and 26 million businesses. With a GDP of €18 trillion, it is the world’s second-largest economy, offering the scale, stability, and legal certainty companies need to thrive. It has already boosted EU GDP by 3–4% and created 3.6 million jobs—with the potential to double these gains if fully completed.

Building on insights from high-level reports, including from Enrico Letta and Mario Draghi, the Commission's Single Market Strategy outlines a fresh approach to strengthen Europe’s competitiveness. Key priorities include:

• Reducing barriers to trade and investment
• Advancing digitalisation
• Simplifying rules
• Strengthening enforcement and implementation

A major focus is supporting SMEs, startups, and scaleups who, along with small mid-cap companies, are often the most affected by complex regulations and fragmented rules across EU countries. By simplifying the Single Market, the strategy aims to reduce costs, improve access, and create more growth opportunities for Europe’s most dynamic businesses.

Measures to support SMEs include: 

• The launch an SME ID – an online self-assessment tool in all EU languages to help determine whether your organisation qualifies as a SMEs (access the tool here)
• An SME check to new EU policies to reduce burdens
• Support for SMEs to show sustainability efforts and access green finance
• A new category for small and mid-cap companies (SMCs) to widen support

Want to find out more? Read more about the Single Market Strategy.

The European Commission is rolling out a series of measures to cut red tape for businesses, with a new "Omnibus package" adopted alongside this strategy. It will ease rules by:

• Extending certain SME benefits to slightly larger companies (small mid-caps)
• Allowing digital product instructions and compliance documents
• Solving issues for products stuck due to missing EU standards

More packages are on the way, including ones focused on digital rules and environmental obligations—making compliance easier without creating new hurdles for businesses.

More information on the Fourth Omnibus package can be found here.