As you no doubt are aware by now, we here at EcovisDCA are big supporters of Small and Medium Enterprises (SME’s). We have spoken at length in the past about the challenges faced by these types of businesses as well as the opportunities for growth and investment surrounding them. This week, we are focusing on the bigger picture for SMEs in Europe.
Data released from Eurostat, the European Union’s statistical office this week revealed that SMEs actually generate half the value of the intra-EU trade in goods. Whilst we have long known that SMEs form the backbone of the Irish economy, we now see that they are beginning to form the cornerstone of trade within the European Union also. SMEs in counties such as Latvia, Cyprus, Estonia and the Netherlands fly the flag for European SMEs as they are understood to have generated in excess of two thirds of intra-EU goods exports.
These new findings show that 98% of companies trading goods within the EU are SMEs, and that 70% of these companies are micro-enterprises. Small and Medium Enterprises are defined within the European Union as being non-subsidiary, independent firms which employ fewer than 250 employees, whilst micro-enterprises are defined as being businesses operating on a much smaller scale, with fewer than 9 employees.
Whilst we know that SMEs account for more than half of all Irish business, this new data shows that there is massive room for improvement for Irish SMEs within the larger European Union market. Irish SMEs account for less than one third of the intra-EU exports which given our size compared to larger countries may be understandable, but does allow for more expansion of Irish SMEs into this marketplace.
With Irish Small and Medium Enterprises now having greater access to a wider number of funding options than were available previously, there is now more opportunity for Irish SMEs to take to the World Stage. As always, we root for the underdogs here in Ireland!
Should you require any assistance or guidance on any financial or business matters, please don’t hesitate to get in touch with us here at EcovisDCA where we will be delighted to be of service.
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