SMEs: Commission reports highlight continued growth and challenges for women entrepreneurship

The European Commission has published the 2025/2026 Annual Report on European SMEs together with a new report on women entrepreneurship, providing an updated overview of the European business landscape and the key challenges that will shape future EU policies supporting small and medium-sized enterprises. In 2025, Europe’s SMEs sector, with more than 34 million enterprises, continued its growth path, recording a 1.8% increase in the number of enterprises, a 2.5% rise in real value added and 1% employment growth. At the same time, the reports underline the need to accelerate the uptake of digital technologies and artificial intelligence, boost productivity and improve access to finance, particularly for women-led businesses, which still account for only one third of entrepreneurs across the EU.