Number of SMEs in the European Union 2008-2023, by size

There were estimated to be approximately 24.4 million small and medium-sized enterprises (SMEs) in the European Union in 2023, with the vast majority of these enterprises micro-sized firms which only employed fewer than nine people. A further 1.32 million enterprises were small firms with between 10 and 49 employees, while 202,278 were medium-sized firms that had 50 to 249 employers. 

The contribution of SMEs to the European Economy

Small and medium sized enterprises (SMEs) form the backbone of the European economy. These companies comrpise around 99.8 percent of all active businesses in Europe, while producing almost 52 percent of total value added in the EU. These companies are not just economically important to the continent however, as they also form an important part of the cultural fabric of European communities, with SMEs being particularly important for rural regions and smaller towns. 

Almost 85 million employed by SMEs

In 2023 SME’s in the European Union employed almost 85 million people. In Europe’s biggest economy, Germany, SMEs employed 18.5 million people, with over 6.8 million people employed by small-sized enterprises alone.