Struggling Businesses Paint Somber Scenario in Small and Medium Enterprise Survey
In a recent survey conducted from March 15 to 31, 2025, Mag. Gerald Zmuegg, the CEO of KMU-Finanzinsider, revealed concerning findings about the financial health of small and medium-sized enterprises (SMEs) in Austria. The survey involved 1,067 SMEs with a balance sheet total of up to 25 million euros.
According to Zmuegg, only 12% of respondents expect an improvement as a result of the government's current package, reflecting a widespread view that the programme will not lead to improvement. This pessimism is further supported by the fact that almost 63% of the companies registered a decline in revenue after the first full year following the end of lockdown measures.
The survey also showed that 81% of the surveyed companies reported a loss for the year 2024, with 76% of companies needing additional money. Zmuegg suggests that the government needs to address these financial difficulties by reducing the rejection rate of credit requests from SMEs by banks and increasing state guarantees for bank loans and private investors.
To support SMEs facing financial difficulties in 2025, the Austrian government could consider several targeted measures. These measures include simplifying and accelerating subsidy programs, expanding public investment and guarantee funds for SMEs, promoting access to cheaper and more flexible financing, and encouraging innovation in payment and treasury solutions.
Zmuegg implies that Austria's government needs to adapt to the changed conditions, similar to the companies. He suggests that new credit allocation regulations by the FMA are needed, and measures planned for 2026 are too late to provide relief.
Personnel, energy, and rent are the main cost drivers for the surveyed companies. Despite a slowing pace of price increases, 64% of companies reported an increase in prices compared to the previous year. Zmuegg states that these measures are crucial to address the financial difficulties faced by SMEs and to ensure their continued survival and growth.
In conclusion, the Austrian government's effective SME support in 2025 could include reducing subsidy process burdens, increasing targeted investment funds, ensuring financial sector stability, facilitating better loan conditions, and promoting innovative payment systems. These measures would address financial difficulties by improving both access to capital and operational efficiencies for SMEs.
The survey revealed that 76% of the struggling SMEs need additional finance, emphasizing the need for the government to address this issue. Zmuegg further suggests that the government should consider promoting access to cheaper and more flexible financing, as part of its efforts to support these businesses.
In light of the pessimistic outlook among SMEs about the government's current package, Zmuegg suggests that the government should also consider introducing new credit allocation regulations, aimed at reducing the rejection rate of credit requests from SMEs by banks and increasing state guarantees for bank loans and private investors.
