Austria Emphasizes SMEs' Critical Role in Economic Stability on International SME Day

On International SME Day, Austria's Minister of Economy, Wolfgang Hattmannsdorfer, emphasized the vital role played by small and medium-sized enterprises (SMEs) in the nation's economy. These businesses make up approximately 99.7% of all companies in Austria and provide employment for over 2.5 million individuals, including 53,700 apprentices. Hattmannsdorfer highlighted their importance as the economic backbone and reaffirmed government initiatives to support them. Recent government measures include a tax exemption on small transport vehicles starting July, along with plans to increase the flat-rate threshold to EUR320,000 in 2025 and EUR420,000 in 2026, aiming to reduce administrative burdens on SMEs. Additionally, funding for the 'go-international' program to promote internationalization has been increased. Data from the Ministry of Economy indicates that SMEs contributed EUR168 billion to Austria's gross value added last year, accounting for 56% of the total in the market-oriented economy. After pandemic-related setbacks in 2020, the sector experienced growth in 2021 and 2022. However, in 2023, economic activity slowed, with a 0.5% decrease in the number of businesses and a 2...