representing 99% of all businesses in the EU, SMEs are the backbone of Europe’s economy. SMEs are very diverse in terms of business models, size, age, and entrepreneurs’ profiles. They range from liberal professions and microenterprises in the services sector to middle-range industrial companies, from traditional crafts to high-tech start-ups.
The transformative impact for SMEs to embrace and drive sustainable development is on the rise. This shift is associated with long-term economic growth and minimal ecological damage. SMEs should carefully consider the social/environmental risks and threats to their long-term existence. Although the environmental footprint of individual SMEs may be low, their aggregate impact is significant.
SMEs are deeply woven into Europe’s economic and social fabric. They provide two out of three jobs, bring training opportunities across regions and sectors, including for low-skilled workers, and support society’s welfare, including in remote and rural areas. Competitive sustainability is Europe’s guiding principle for the future. Achieving a climate neutral, resource efficient economy requires the full mobilisation of SMEs. For this, tailor-made measures are a prerequisite to develop a thriving SME layer of economy as well as to give opportunities for growth to those SMEs that wish to scale up.