Strengthening the role of SMEs in Europe’s digital, economic and sustainable transformation

Download the Policy Brief Download the One-Pager

Small and medium-sized enterprises are the backbone of Europe’s economy. They account for nearly all EU businesses, support millions of jobs, and generate more than half of EU value added. Yet while SMEs are able to participate in the Single Market, too many still face barriers when trying to scale across borders. Fragmented rules, complex compliance obligations, and high fixed costs make expansion harder than it should be.

Closing this “scale gap” is essential to strengthening Europe’s productivity, competitiveness, and economic integration. Digitalisation and e-commerce have already helped SMEs reach customers beyond their local markets, grow across borders, and compete regardless of location. The next challenge is ensuring that Europe’s policy framework allows these businesses not only to participate in the Single Market, but to scale within it.

Key figures	Policy recommendations
99.8% of EU businesses are SMEs 88.7 million jobs are supported by SMEs More than 50% of EU value added is generated by SMEs 67% of SMEs trade cross-border 18% of SMEs do not yet trade cross-border but would like to Up to 2.5% of turnover can be spent by SMEs on regulatory compliance	Reduce fragmentation across the Single Market Simplify and harmonise rules across Member States, particularly where divergent national requirements create disproportionate burdens for micro and small businesses. Deliver an ambitious and SME-friendly 28th regime Create a practical, optional EU-wide framework that reduces legal complexity, lowers fixed compliance costs, and is accessible to both new and existing businesses across sectors. Embed the “Think Small First” principle across the policy cycle Ensure EU rules are designed, implemented, and enforced with full consideration of proportionality, cumulative burden, and the realities faced by smaller businesses.

Key figures

Policy recommendations

99.8%

of EU businesses are SMEs

88.7 million

jobs are supported by SMEs

More than 50%

of EU value added is generated by SMEs

67%

of SMEs trade cross-border

18%

of SMEs do not yet trade cross-border but would like to

Up to 2.5% of turnover

can be spent by SMEs on regulatory compliance

Reduce fragmentation across the Single Market

Simplify and harmonise rules across Member States, particularly where divergent national requirements create disproportionate burdens for micro and small businesses.

Deliver an ambitious and SME-friendly 28th regime

Create a practical, optional EU-wide framework that reduces legal complexity, lowers fixed compliance costs, and is accessible to both new and existing businesses across sectors.

Embed the “Think Small First” principle across the policy cycle

Ensure EU rules are designed, implemented, and enforced with full consideration of proportionality, cumulative burden, and the realities faced by smaller businesses.

We want to expand across Europe and there’s strong demand for what we sell, but navigating different national rules can be difficult. At times, selling outside the EU feels more straightforward, which makes us reconsider where to focus our growth efforts.

Ian Naughton

Naughtons Car Dismantlers

Castlebar, Republic of Ireland

https://www.ebay.co.uk/str/naughtonsglobalusedparts

There is real demand for our products across Europe, but each new market comes with different requirements. For a small business, that complexity can slow down or even limit how far we expand.

Pierre Chicourrat

Le Paradis de Jaden

Saint-Cloud, France

https://www.ebay.fr/str/leparadisdejaden

Digital tools have definitely helped us grow, but expanding further across borders is still complex. Every new country brings additional rules and requirements, which makes it harder for smaller businesses to scale at the same speed as larger ones.

Andreas Müller

Deltatecc

Sarwellingen, Germany

https://www.ebay.com/str/deltatecc

We’re based outside a major city, so our local customer base is quite limited. Using online marketplaces has enabled us to reach buyers across Europe and grow far beyond what our local market would allow.

Michelina Romano

Rubik Elettronica

Rimini, Italy

https://www.ebay.it/str/vendilorimini

Strengthening the role of SMEs in Europe’s digital, economic and sustainable transformation

Download the Policy Brief - (A4 Size) Download the Policy Brief - (Letter Size) Download the One-Pager - (A4 Size) Download the One-Pager - (Letter Size)