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SMEs recover faster than expected, but uncertainty is rising

14 October 2021
by smeunited -- last modified 14 October 2021

The SME Business Climate Index presented today shows a steep recovery of 16.3 points up to 76.1% after the weak result of 59.8% recorded in Spring 2021. President Maggiar pointed out that the loosening of the tight lockdown measures in Europe, together with the success of the vaccination schemes, have allowed the rapid improvement of the SMEs economic activities.


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However, the SME Climate Index is still behind average of Europe's economy. In fact, SMEs have been impacted by the crisis more heavily than other companies due to their stronger concentration in the personal services  sector, which was mostly hit by the lockdowns.

When presenting the details of the latest SME Barometer developed by the SMEunited Study Unit, Economic & Fiscal Policy Director Gerhard Huemer showed that the results for the last semester were much better than expected. SMEs could benefit from reopening, and also from continued support measures and strong recovery programmes in most Member States. Both pushed turnover and allowed SMEs to restart investing.

However, Mr. Huemer also pointed out to the mounting uncertainty perceived by SMEs about the future. Such sentiment is apparent from the Barometer results, and it is partly due to the current scarcity of resources and consequent rise in prices for energy and raw materials. This is especially affecting manufacturing and construction enterprises, rather than services. In parallel, SMEs seem confident about their own business: encouraging upswings   are forecasted for turnover, investments, orders, and employment. Thus signalling SMEs' intentions to hire more personnel in the following months.

According to SMEunited, to pass through the current uncertainty, the focus of policies at European and national level should be on stabilising supply chains and price developments. This has to be accompanied by an adequate balance of mutually reinforcing investments and reforms aimed at driving the digital and green transitions.

SMEunited, formerly known as UEAPME, is the association of crafts and SMEs in Europe with around 70 member organisations from over 30 European countries. SMEunited is a recognised employers' organisation and European Social Partner and acts on behalf of crafts and SMEs in the European Social Dialogue and in discussions with the EU institutions.

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