A cautious but steady improvement in the business environment for small and medium-sized enterprises across the European Union is recorded in the autumn 2025 edition of the “EU SME Barometer”. by SMEunited presented in Brussels.

This is stated in a statement by the Piraeus Chamber of Commerce and Industry.

In detail, the EBEP notes the following:

The Business Climate Index reached 74.1 points, marking a notable step away from the baseline of 70 points and the highest level since 2022. In contrast, the search for quality employment does not appear to improve in 2025. At a recent forum in Portugal, many different views were expressed about what constitutes “quality work” and that no common criteria can capture this diversity.

During the presentation of the new “Eurobarometer” it was explained that these positive results are due to the stabilization of energy prices, the decline of inflation and the fall of interest rates. Northern European SMEs benefit faster than Southern European ones from the improvement in the business climate, especially in the areas of trade and energy intensity. While both regions remain above the confidence threshold, northern SMEs are benefiting faster from stabilizing global trade and cheaper financing. Southern SMEs continue to perform well, especially in services and tourism, with TAA support. Uncertainty, however, still exists because the recovery may be real, but it remains fragile.

In most EU SMEs there are clear signs of economic recovery, with business indicators improving and beating expectations from the first half of 2025. The more cautious outlook for the second half is mainly due to uncertainty, rather than worsening business conditions.

The upward trend in key areas such as turnover and orders suggests a possible continuation of the recovery. In terms of performance by sector, manufacturing remains under pressure despite the easing of cost constraints. On the other hand, the construction sector is showing signs of recovery, supported by lower interest rates and new investments. The services sector is experiencing price increases driven by wages, which are the main driver of inflation.

While the overall situation is forecast to decline slightly, indicators such as employment and turnover show signs of momentum. Labor market tensions have also eased, with job vacancies at a four-year low. In job creation, medium-sized firms lead job creation, thanks to better access to finance and greater resilience to cost pressures. Small businesses are gradually catching up, while micro businesses remain vulnerable to external shocks.

Finally, it is pointed out that in order to overcome the current uncertainty, European policy should focus on continuing to stabilize energy and financial costs and promoting a predictable business environment that will support innovation and investment within the single market.

Discussions on the Roadmap for Quality Workplaces and Work-Life Balance highlight that fair workplaces are a cornerstone of SME competitiveness and that tailored solutions are needed to reflect the realities of small businesses. Flexible working arrangements, childcare and elderly care services, and policies that promote gender equality are essential for businesses to attract and retain workforce talent.

SMEs can better tailor work-life balance solutions to their business and financial realities. Regarding the new Action Plan for the European Pillar of Social Rights (EPSR), the compass should point to an inclusive and sustainable development path.

The president of EBEP, Vassilis Korkidis, regarding the autumn barometer of European small and medium enterprises, said: “Looking towards the completion of the second half of 2025, the truth is that the expectations for 2026 are mixed regarding the economic climate and quality employment.

Increases in real income have boosted private consumption, leading to a small recovery of SMEs in the EU. However, wage increases in the EU-27 should be linked to personal taxes, business profit, wage costs, productivity and inflation. The Eurobarometer indicators by activity and company size show that quality work in SMEs can balance competitiveness with social progress and cohesion”