SMEs in Europe: Taking Stock and Looking Forward

Abstract

SMEs are often praised by politicians and economists alike as the backbone of the economy and an essential factor for employment. They represent the vast majority of the enterprises in Europe and the largest source of employment. Differently from large enterprises, small and medium enterprises enjoyed better image vis-à-vis the great public, and overtime managed to ensure governmental support in times of crisis. This article analyses both the role of SMEs for economic growth and employment and the extent to which they were affected by the financial crisis.