Portuguese SMEs Lead Economic Growth in the EU in 2025
Portugal stands out in the latest Annual Report on European SMEs 2024/2025, published by the European Commission, which presents highly positive indicators for the national business fabric.
According to the data, Portuguese SMEs recorded a real increase in value added of 1.5% in 2024. For 2025, a sharper rise is expected, with projections reaching 3.7%. In terms of employment, growth reached 1.7% in 2024 and is expected to climb to 2.6% the following year — outperforming large enterprises.
Key Growth Sectors
Among the most dynamic sectors are Information and Communication and Real Estate Activities, both significantly boosting employment and value added.
The Tourism ecosystem, the largest in terms of employment, continues to demonstrate strong vitality. In 2024, it grew by 3.1%. Meanwhile, the Renewable Energy sector saw an impressive 11.8% rise in inflation-adjusted value added.
Business Recovery and Resilience
The European report highlights a gradual recovery of the EU’s business ecosystem following the impact of the pandemic and energy crises. Micro and small enterprises have shown greater resilience, contributing strongly to overall economic growth.
In addition, the Cultural and Creative Industries and the Digital sector stand out as key drivers of growth. SMEs in these sectors are expected to achieve the highest growth rates in 2025, in both employment and value added.
Strategic Challenges and Opportunities
Despite the positive results, several challenges persist. These include limited access to financing, administrative barriers, and difficulty scaling operations.
Nevertheless, the Single Market Strategy and the EU Competitiveness Compass are identified as key instruments to improve the European business environment.
The Role of SMEs in the European Economy
SMEs remain the backbone of the European economy, representing 99.8% of all enterprises and more than 65% of employment in the non-financial business sector. In Portugal, their impact is even more significant, with 106 SMEs per 1,000 inhabitants — one of the highest concentrations in the EU.
