The Observatory of European SMEs

2007 Observatory survey

This latest Observatory survey was carried out end of 2006 and early 2007 in the 27 Member States of the European Union (EU), as well as in Norway, Iceland and Turkey - in the countries participating in the Multiannual Programme for Enterprise & Entrepreneurship. It included for the first time large-scaled enterprises (employing at least 250 persons) in its sample, to allow an identification of the specific performances, behaviours and problems of SMEs. Altogether, 16 339 SMEs (17 283 enterprises in total) were interviewed. The survey was primarily enquiring general characteristics of firms active in the countries surveyed, perceptions on business constraints, competition and human resources problems and data on internationalisation and innovation.

In this way, it provided an empirical foundation for the design of SME policies - which are one of the key components of the revised Lisbon Strategy - at the national and the EU level.

The main findings were:

1. Exports

Fewer than one in ten EU SMEs (8%) reported turnover from exports, which was significantly lower than the respective share of large enterprises (28%). The main export obstacle for SMEs was the lack of knowledge of foreign markets (13% of exporting SMEs mentioned this as their prime obstacle), followed by import tariffs in destination countries and the lack of capital (both 9%).

2. Relocation/subsidiaries abroad

Only 5% of EU SMEs have reported that they have subsidiaries or joint ventures abroad. These foreign business partnerships seem to have a positive direct impact on employment in the home countries of EU SMEs: 49% of the involved SMEs confirmed that their partnership does not affect employment in their home country, while 18% reported that it increases and 3% that it decreases their respective employment in the home country. The main reason for SMEs to invest abroad is the geographic proximity as supplier to other enterprises.

3. Strategies against increasing competition

While two thirds of SMEs in the EU believe that competition in their markets has increased over the past two years, the primary strategy of SMEs to face increasing competition is the improvement of product quality. SMEs would only consider in last resort strategies to increase working hours, looking for new markets abroad or cutting production costs.

4. Innovation: New products in enterprise portfolio

About 3 in 10 SMEs indicated that they have new products or that they do have income from new products. The share of SMEs which reported innovations is higher in the old EU Member States than in the new Member States.

5. Barriers to innovation

SMEs regard four factors as constituting equally important barriers to innovation: problems in access to finance, scarcity of skilled labour, a lack of market demand and the high cost of human resources.

6. Energy efficiency

Comprehensive systems for energy efficiency are much less in place in SMEs (4%) than in large enterprises (19%); the same applies for simple measures to save energy, which are used by 30% of SMEs but 46% of large enterprises.

7. Dependency from regional markets

The survey confirms that SMEs (89%) are much more dependant on the regional labour market than large enterprises (77%).

8. Availability of an appropriate workforce

More than half of SME managers said that they have recruitment problems. A primary problem is the availability of an appropriate workforce; excessive wage demands are a relatively distant second issue. Finding and hiring the appropriate workforce is a challenge for many SMEs in the EU. Especially in the new Member States, a significant number of jobs remain unfilled.

9. Administrative regulations

Beyond the limitations of the demand side, the most important individual business constraint reported by SMEs is the compliance with administrative regulations; 36% of EU SMEs reported that this issue constrained their business activities over the past two years. This judgement is linked to the appraisal that 44% of SMEs consider themselves as operating in an over-regulated environment. Furthermore, SMEs perceive an overall deterioration in terms of administrative regulations.

Summary of the results [957 KB]

The summary presents the main findings on each topic covered by the survey: Constraints on business performance, internationalisation, competition, innovation, energy saving, human resources and business performance.

Zusammenfassung [950 KB]

Die Zusammenfasung beinhaltet die Kernergebnisse für jedes von der Erhebung abgedecktes Themengebiet: Hindernisse der Geschäftsentwicklung, Internationalisierung; Wettbewerb, Innovation, Energie-Einsparungen, Personal und Geschäftsentwicklung.
(Die anderen Dokumente zu der Erhebung sind vollständig auf dieser Website publiziert. Sie sind ausschliesslich in Englisch verfügbar).

Résumé [862 KB]

Le résumé présente les résultats principaux pour chaque sujet couvert par l'enquête: Contraintes au développement des entreprises, internationalisation, concurrence, innovation, économies d'énergie, ressources humaines.
(Les autres documents relatifs à cette enquête sont intégralement sur ce site. Ils sont uniquement disponibles en anglais.)

Analytical Report [13 MB]

The report presents in detail the survey replies by country and compares the replies of SMEs to those of large enterprises. It includes a large set of overview tables showing the results by country and size class.

Technical and Evaluation report [695 KB]

The report presents the technical details of the survey conduction.

Explanatory notes for the results tables [599 KB]

The notes provide the background information which is necessary for the correct understanding of the below results tables.

Results tables by country groups (all enterprises) [225 KB]

The tables show the aggregated replies of all enterprises for a number of country groups (inter alia EU27, EU25 and EU10).

Results tables by country groups (SMEs only) [225 KB]

The tables show the aggregated replies of SMEs for a number of country groups (inter alia EU27, EU25 and EU10).

Results tables by country groups and individual countries (all enterprises) [530 KB]

The tables show the aggregated replies of all enterprises for each country covered by the survey and for a number of country groups (inter alia EU27, EU25 and EU10).

Results tables by country groups and individual countries (SMEs only) [529 KB]

The tables show the aggregated replies of all SMEs for each country covered by the survey and for a number of country groups (inter alia EU27, EU25 and EU10).

Results tables for the EU-27 by size-class and industry (all enterprises) [296 KB]

The tables present the results for the EU-27 for the following size-classes: 1-9 persons employed (micro enterprises), 10-49 persons employed (small enterprises), 50-249 persons employed (medium-sized enterprises) and at least 250 persons employed (large-sized enterprises). Furthermore the replies by all enterprises are shown for the following broad economic activities: manufacturing; construction; wholesale and retail; hotels and restaurants; transport, storage and communication; financial intermediation; real estate, renting and business activities; health and social work; other community, social and personal service.

Results tables for the EU-27 by size-class and industry (SMEs only) [296 KB]

The tables present the results for the EU-27 for the following size-classes: 1-9 persons employed (micro enterprises), 10-49 persons employed (small enterprises), 50-249 persons employed (medium-sized enterprises) and at least 250 persons employed (large- sized enterprises). Furthermore, the results by the replying SMEs are shown for the following broad economic activities: manufacturing; construction; wholesale and retail; hotels and restaurants; transport, storage and communication; financial intermediation; real estate, renting and business activities; health and social work; other community, social and personal service.

Results tables for each country by size-class and industry (all enterprises) [3 MB]

The tables present the results for each country for the following size-classes: 1-9 persons employed (micro enterprises), 10-49 persons employed (small enterprises), 50-249 persons employed (medium-sized enterprises) and at least 250 persons employed (large- sized enterprises). Furthermore the replies of all enterprises are shown for the following broad economic activities: manufacturing; construction; wholesale and retail; hotels and restaurants; transport, storage and communication; financial intermediation; real estate, renting and business activities; health and social work; other community, social and personal service.

Results tables for each country by size-class and industry (SMEs only) [3 MB]

The tables present the results for each country by the following size-classes: 1-9 persons employed (micro enterprises), 10-49 persons employed (small enterprises), 50-249 persons employed (medium-sized enterprises) and at least 250 persons employed (large- sized enterprises). Furthermore, the results of the replying SMEs are shown for the following broad economic activities: manufacturing; construction; wholesale and retail; hotels and restaurants; transport, storage and communication; financial intermediation; real estate, renting and business activities; health and social work; other community, social and personal service.

Codebook for the raw data [96 KB]

The codebook explains the abbreviations contained in the below raw data files.

Raw data (all enterprises) [2 MB]

The raw data contain the (anonymous) replies of each participating enterprise.

Raw data (SMEs only) [2 MB]

The raw data contain the replies of those participating SMEs which disclosed during the survey their number of persons employed.

2003 Observatory reports

The 2003 Observatory consists of a series of reports on SME-related issues. The research was carried out by ENSR (the European Network for SME Research), co-ordinated by EIM. The reports also rely on a survey conducted among over 7800 SMEs in Europe.

The 2003 Observatory reports can be downloaded here. Hard copies of these reports are on sale through the sales agents of the Publication Office, the European Union's publisher.

In 2003-2004 the following reports have been published:

2003/1: Competence development in SMEs [569 KB]

This report provides an analysis of how European SMEs develop their in-house competence and acquire external expertise. It also focuses on the main attitudes, on the benefits and barriers that SMEs face in this activity

2003/2: SMEs and Access to Finance [358 KB]

This report focuses on the situation of European SMEs' debt financing. The report coverage, which includes financing through overdrafts, bank loans, leasing and factoring, does not comprise equity financing. A view on trade credit and guarantee schemes is also offered.

2003/3: SMEs and the Liberalisation of Network Industries: telecommunications and electricity markets [505 KB]

This report focuses on the deregulation and privatisation process implemented within the EU from an SMEs' perspective. Specifically the report identifies the impact of the liberalisation process on SMEs as consumers of services provided by public utilities (especially telecommunication and electricity)

2003/4: Internationalisation of SMEs [482 KB]

This report investigates how SMEs internationalise their activities and the main reasons for internationalisation. It also focuses on how internationalisation affects SMEs' organisation and their competitiveness. A view on those barriers that hinder SMEs' internationalisation is given as well.

2003/5: SMEs and Co-operation [443 KB]

This report establishes the case for co-operation between SMEs in Europe (i.e. characteristics, properties and functions) and verifies the extent of SME co-operation in the EU by countries, sectors and business size class. It also focuses on how co-operation strengthens SMEs competitiveness

2003/6: The Impact of EU Enlargement on European SMEs [616 KB]

This report presents the economic impact on SMEs of the changes in framework conditions brought about by the EU enlargement, both in current and future EU Member States. It also gives description of the experiences and views gathered from SMEs' entrepreneurs with respect to the enlargement

2003/7: SMEs in Europe 2003 [677 KB]

This report presents main statistics on European SMEs in comparison with the US, Japan and the Candidate Countries. It also presents medium term development of SMEs compared with LSEs. A section on SMEs' behaviour in the business cycle is included as well

2003/8: Highlights from the 2003 Observatory [463 KB]

In the framework of the Observatory, a survey was carried out on over 7800 SMEs in 19 European countries. The ENSR Survey feeds into some of the reports carried out for the Observatory and this report presents the main results of the 2003 Survey as well as an executive summary of the other reports.

2002 Observatory Report

SMEs in focus - Main results from the 2002 Observatory of European SMEs (Executive summary) [191 KB]

Report 2002 / No. 1: Highlights from the 2001 Survey [129 KB]

In the framework of the Observatory, a survey was carried out on over 7600 SMEs in 19 European countries. The ENSR Survey feeds into some of the reports carried out for the Observatory, on social responsibility, on administrative burdens and on taxation. The ENSR Survey also provides data for other activities and publications, such as the Enterprise Scoreboard. The Survey Report presents the main results of the survey.

Report 2002 / No. 2: SMEs in Europe, including a first glance at EU candidate countries [252 KB]

This report is one of the main sources for basic statistics for SMEs in Europe.

Report 2002 / No. 3: Regional clusters in Europe [304 KB]

Clusters of firms have been mostly studied in some European countries (like Italy) while other countries (like the United Kingdom) have recently started to take into account the cluster dimension in enterprise policies. The report looks first at the diverse situation in respect to knowledge of clusters in the European countries. Then, it attempts to make some comparisons between a number of clusters around Europe. Finally, the report focuses on the policy implications of clusters, at European, national and regional level.

Bibliography [145 KB]

Report 2002 / No. 4: European SMEs and Social and Environmental Responsibility [446 KB]

An increasing number of companies undertake social and environmental responsibility activities. The report analyses how SMEs perceive their role to this regard and which instruments they use to interact with it. The report identifies the benefits for SMEs from active social policies. This report has benefited from the input from the ENSR Survey, which constitutes one of the main sources of information on this issue.

Bibliography [156 KB]

Report 2002 / No. 5: Business demography in Europe [386 KB]

The report takes stock of the current situation on the availability and comparability of business demography data, covering also the candidate countries. The report attempts to look at the correlation between the economic cycle and entry and exit rates. Finally the report covers a number of policies aimed at affecting business demography at national and regional level.

Bibliography [81 KB]

Report 2002 / No. 6: High-tech SMEs in Europe [433 KB]

The report covers the general conditions and problems that high tech SMEs face, and gives a general overview of SMEs in high-tech (bio-tech, IT, etc.). A number of more specific issues are covered: access to capital, access to skilled labour, access to knowledge, access to networks, and access to public support schemes.

Bibliography [167 KB]

Report 2002 / No. 7: Recruitment of employees: Administrative burdens on SMEs in Europe [394 KB]

The report concentrates on the burdens linked to hiring the first or an additional employee. This is an issue regarded by small enterprises as one of the major problems they face, affecting their capacity to grow and to create employment. On one side the report looks at the developments in national policies and administrative practices. On the other side, based on the ENSR Survey, the report analyses the opinions of SMEs.

Bibliography [88 KB]

Report 2002 / No. 8: Highlights from the 2002 Survey [366 KB]

Up to 2000, each report gave an overview of the current situation in the SME sector and looked at several individual areas that are of special concern to SMEs. Each report also contained two in-depth studies on themes of particular relevance to SMEs.

Report 2000

The report is published in English, French and German. The report is out of print.

• Full report [2 MB]
• Executive summaries [299 KB]

Earlier Observatory Reports

Executive summary of the 5th Report of the European Observatory for SMEs (1997) [60 KB]

Executive summary of the 4th Report of the European Observatory for SMEs (1996) [95 KB]

Statistical Information on 2003 and 2002 survey

ENSR 2003 Survey

A series of 'table-books', organised following a thematic approach, covers the same topics as the 2003 Observatory reports.

1. General characteristics: Introduction, frequency tables, cross tabulations [276 KB] - statistics for the cross tabulations [189 KB]

2. Economic slowdown: Introduction, frequency tables, cross tabulations [216 KB] - statistics for the cross tabulations [206 KB]

3. Co-operation among SMEs: Introduction, frequency tables, cross tabulations [287 KB] - statistics for the cross tabulations [405 KB]

4. Internationalisation: Introduction, frequency tables, cross tabulations [367 KB] - statistics for the cross tabulations [896 KB]

5. Enlargement of the European Union: Introduction, frequency tables, cross tabulations [274 KB] - statistics for the cross tabulations [397 KB]

6. Liberalisation of the telecommunication and electricity market: Introduction, frequency tables, cross tabulations [418 KB] - statistics for the cross tabulations [441 KB]

Questionnaire of the survey [58 KB]

ENSR 2002 Survey

The 2002 ENSR Survey on European SMEs was designed to provide uniform data on SMEs from nineteen European countries. The large number of enterprises interviewed (N=7669) allows results to be presented for each of the 19 countries covered, i.e. the 18 Member States of the EEA and Switzerland. SMEs are defined as enterprises with less than 250 employees.

Interviews were conducted by a system of Computer Assisted Telephone Interviewing (CATI). In the Technical Note [55 KB] , the approach and methodology of the 2002 ENSR Survey on European SMEs is described in detail to provide information on issues such as the sample plan and the weighting scheme.

The survey was carried out from April - August 2002. All information refers to this reference period, unless explicitly stated otherwise (i.e. turnover 2000). Generally, the percentages given refer to all SMEs in the nineteen countries.

The menu contains seven cross variables, i.e.:

1. Size of enterprise (number of employees) [61 KB] Excel version [145 KB] - Chi-Square Tests [171 KB] Excel version [2 MB]

2. Sector of enterprise [50 KB] Excel version [785 KB] - Chi-Square Tests [96 KB] Excel version [2 MB]

3. Country [78 KB] Excel version [3 MB] - Chi-Square Tests [99 KB] Excel version [2 MB]

4. Age of enterprise [46 KB] Excel version [783 KB] - Chi-Square Tests [106 KB] Excel version [2 MB]

5. Export (y/n) [47 KB] Excel version [630 KB] - Chi-Square Tests [198 KB] Excel version [3 MB]

6. Gender of entrepreneur [45 KB] Excel version [590 KB] - Chi-Square Tests [201 KB] Excel version [3 MB]

7. Member of EU (y/n) [44 KB] Excel version [600 KB] - Chi-Square Tests [212 KB] Excel version [3 MB]

p.m.: frequency tables [35 KB] Excel version [311 KB]

Questionnaire of the survey [34 KB]