On the occasion of “International SME Day” on Friday, Minister of Economic Affairs Wolfgang Hattmannsdorfer (ÖVP) paid tribute to the achievements of Austria’s small and medium-sized enterprises (SMEs). These represent 99.7 percent of all businesses in Austria and employ over 2.5 million people as well as 53,700 apprentices. They are “the backbone of our economy” and are supported by the government — for example, through the exemption from the NoVA tax for small commercial vehicles starting in July.
“With the increase of the flat-rate tax threshold to 320,000 euros in 2025 and 420,000 euros in 2026, we are also reducing bureaucratic burdens and taking another step toward relief for small and medium-sized businesses. In addition, we are doubling the funding for our internationalization initiative ‘go-international’,” Hattmannsdorfer said. He also pointed to a “qualification campaign.”
SMEs generate €168 billion in gross value added
According to the Ministry of Economic Affairs, SMEs generated €168 billion in gross value added last year, accounting for 56 percent of the total gross value added of Austria’s market-oriented economy. After setbacks in 2020 due to the COVID-19 pandemic, the SME sector experienced renewed growth in 2021 and 2022. However, 2023 was marked by a weakening of the economic cycle and a decline in the number of businesses (down 0.5 percent) and real gross value added (down 2 percent), while employment levels in the SME sector remained stable.
For 2024, the ministry stated in a press release on Friday: “Initial estimates for the year 2024 point to a continued decline in real gross value added (minus 1 percent) and a slight increase in the number of businesses (plus 1 percent, reaching 585,300 companies). The number of employees is expected to remain at 2023 levels.”
Equity ratio at 36 percent
In the 2022/23 fiscal year, companies saw a slight decrease in profitability compared to the previous year, while their equity positions improved slightly. On average, SMEs achieved a profit margin of 5.7 percent and an equity ratio of 36 percent.
