More SMEs than ever, but entrepreneurship is under pressure
April 2026 - Belgium now has more SMEs than ever. In 2024, there were 1.37 million small and medium-sized enterprises in operation. This record figure confirms that entrepreneurship is still alive and well in our country. However, there is also some less positive news: growth is slowing, more and more businesses are closing down, and the financial buffers of many SMEs are under pressure. This is evident from the new SME Report 2025 by UNIZO, GraydonCreditsafe and UCM.
Flanders, in particular, continues to have the highest number of SMEs, accounting for more than half of all businesses in Belgium. However, the growth of new businesses is slower than it was a few years ago. Whilst the number of SMEs grew by more than 3 per cent in 2020 and 2021, that rate now stands at around 1.6 per cent. At the same time, more and more businesses are closing down: in 2024, over 101,000 SMEs ceased trading, of which more than 11,000 went bankrupt.
This points to a clear strain in the business climate. New businesses continue to emerge, but it is becoming more difficult to build them up sustainably.
Smaller employers are disappearing
A striking trend is the shift in the business landscape. The number of self-employed people without staff is growing, as is the number of larger SMEs. However, businesses with one to four employees are disappearing with increasing frequency.
For many entrepreneurs, the step towards becoming an employer is proving increasingly difficult. Higher wage costs, complex regulations and administrative obligations make it harder to take on staff. As a result, many entrepreneurs are choosing to continue working alone or to postpone their growth.
This is problematic for the economy, as growing SMEs are traditionally a key driver of job creation.
Buffers are running low
In addition to structural challenges, many businesses are also struggling with a weaker financial position. In recent years, SMEs have faced a succession of shocks: first the pandemic, then the energy crisis and rising raw material prices. Many companies used their reserves to weather these periods or to continue making necessary investments.
Today, it appears that in many cases these buffers have shrunk significantly. A considerable proportion of SMEs would struggle to absorb a new economic shock. In Flanders, around 1 in 17 SMEs is at increased risk of failure; in Brussels, that figure is as high as 1 in 10.
Running a business has become more expensive
The cost structure of businesses has also undergone structural changes in recent years. Wages rose by almost 20 per cent between 2022 and 2025. Energy prices remain higher than before the energy crisis, and financing has also become more expensive due to higher interest rates.
or entrepreneurs, this means there is less margin left to build up reserves or make new investments. Moreover, many business leaders are finding that their customers are paying closer attention to price themselves, making it harder to pass on price increases.
As a result, running a business is becoming less and less about hard work alone. It is increasingly a matter of careful calculation, cost control and strategic risk management.
