Hattmannsdorfer Highlights the Importance of SMEs to Austria's Economy

On the occasion of the International SME Day, Wolfgang Hattmannsdorfer, Austria's Minister of Economy, praised the contributions of local small and medium-sized enterprises (SMEs). He noted that these businesses account for an impressive 99.7% of all companies in Austria and employ over 2.5 million people, including 53,700 apprentices. Hattmannsdorfer emphasized their critical role as the backbone of the national economy, reaffirming government support for these vital entities.

The government has introduced measures such as the exemption from the NoVA (motor vehicle tax) for small transport vehicles starting in July. In addition, Hattmannsdorfer announced plans to raise the base flat rate to EUR320,000 in 2025 and EUR420,000 in 2026, aimed at reducing bureaucratic burdens and further alleviating the pressure on SMEs. He also highlighted an increase in funding for the internationalization initiative 'go-international.'

According to statistics from the Ministry of Economy, the gross value added by SMEs reached EUR168 billion last year, representing 56% of the gross value added of the market-oriented economy. Following downturns due to the COVID-19 pandemic in 2020, the SME sector experienced growth in 2021 and 2022. However, 2023 saw a moderation in economic activity, with a 0.5% decrease in the number of businesses and a 2% decline in real gross value added, all while maintaining stable employment levels in the sector.

Looking ahead to 2024, preliminary estimates from the Ministry of Economy suggest a continued decline in real gross value added (projected at -1%) alongside a slight increase in the number of businesses (up 1% to 585,300 companies). Employment levels are expected to remain consistent with those of 2023.

In terms of financial health, SMEs reported a slight decrease in profitability for the fiscal year 2022/23 compared to the previous year; however, their equity situation showed modest improvement. The average profit margin for SMEs stood at 5.7%, while their equity ratio was recorded at 36%.