Small and medium-sized enterprises (SMEs) form the backbone of the European economy. In 2022, the EU had 32.3 million companies, 99% of which were micro and small businesses with up to 49 employees. Together, they employed 160 million people and generated nearly one-third of total turnover. While medium and large companies make up far fewer businesses, they account for a significantly higher share of revenue. These figures underline the crucial role SMEs play in employment, innovation, and economic stability across Europe (Eurostat, 2024).
Despite their importance, SMEs in Europe face growing challenges. Complex regulations, ever-increasing legal requirements, and high administrative burdens slow growth and limit innovation. Between 2017 and 2022 alone, 850 new obligations were introduced, spread across more than 5,000 pages of legislation. Small businesses, in particular, are heavily affected by this bureaucratic load (BusinessEurope, 2024).
Digital solutions offer a promising way to reduce this burden. Systems like the Once-Only Technical System (OOTS) can simplify administrative processes significantly. Studies show that implementation could cut costs by over 50% and reduce processing times by around half—especially for cross-border activities (EU Commission, 2024). For SMEs and the self-employed, this translates into valuable time that can be redirected toward core business activities, innovation, and growth.
It is clear that changing the regulatory framework alone is not enough. Entrepreneurs must also be prepared for the digital future. Training, technical support, and the development of digital skills are crucial to allow SMEs to work more efficiently, overcome bureaucratic hurdles, and maintain long-term competitiveness. Digitalization is not just a tool for cost reduction—it is a strategic key to growth, innovation, and the future viability of the European economy.
Europe faces a clear challenge: SMEs must be strengthened through simplified regulations, digital solutions, and targeted support. Only then can they continue to fulfill their central role as employers, innovation drivers, and growth engines across Europe.
Support through Erasmus+ and the Entre-VET Project
Erasmus+ plays a crucial role in promoting the digitalization of SMEs across Europe. The Entre-VET project, funded under Erasmus+, aims to transform vocational education and training institutions into vibrant entrepreneurial and digital innovation centers. As part of this project, a digital learning platform with modules on starting a business is being developed. Vocational students and other interested learners can use this platform to learn how to start a company and develop entrepreneurial skills.
The project collaborates with local entrepreneurs and organizes workshops for students on various business topics. Vocational students have the opportunity to learn directly from entrepreneurs, gaining insights that help shape the next generation of innovative business leaders.
Through initiatives like these, Erasmus+ not only supports the digitalization of SMEs but also fosters the development of entrepreneurial skills and strengthens cooperation between educational institutions and the business community. This, in turn, helps enhance the competitiveness of SMEs in Europe and prepares them for the challenges of the digital future.
Co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Education and Culture Executive Agency (EACEA). Neither the European Union nor EACEA can be held responsible for them.