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. 

The annual report is prepared on a yearly basis by the European Commission to provide 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.

Read the report here.