The Slovenia Times

European SME Week promotes backbone of EU's economy


While SMEs play a key role in Slovenia's economy, the number of people working there in 2016 was still slightly below the levels preceding the 2008 crisis, according to a report in which the European Commission also said that lack of staff might become a challenge.

The EU defines SMEs as companies employing less than 250 people and generating less than EUR 50m in sales revenue, with under EUR 43m in assets.

SMEs make up 99.8% of all companies in the EU, employ more than three quarters of the workforce in the bloc and account for about 75% off total added value generated.

In Slovenia, SMEs play a key role in the construction and service sectors, followed by manufacturing, according to the Statistics Office.

SMEs accounted for more than 70% of added value in the construction sector, they generated nearly 65% of revenue and employed almost three quarters of workers in the sector, data show.

This has however only become the case after the 2008 economic crisis. Before that, 55% of added value generated in the sector was attributed to less than 3% of big companies which also employed 53% of the sector's workforce.

SMEs in manufacturing accounted for less than half of the added value and revenue generated by the sector last year. They employed 59% of workers in manufacturing.

In the services sector, there is a great variety in companies, according to the Statistics Office. Moreover, there are virtually no big companies providing real-estate sale services and repairs in Slovenia, the office added.


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