The 3 biggest challenges for SMEs
December 2024
1. Unfavourable business climate
It is no secret that the business climate in Belgium has become more difficult. Confidence among Belgian entrepreneurs has fallen in recent months, partly due to rising labour costs and uncertainties in international markets. This affects many sectors, from construction to manufacturing, where companies are struggling with underutilised capacity and rising costs. For example, exports have declined, and the competitive position of Belgian companies has weakened, especially in energy-intensive sectors.
2. Digitisation and innovation
Yet Belgian entrepreneurs continue to adapt and look for new ways to innovate. The shift to digital technologies offers a way out, although for many entrepreneurs it proves challenging to switch completely to digital invoicing, for instance. On 1 January 2026, digital invoicing will become the norm for B2B transactions. However, research shows that only 1 in 3 Belgian entrepreneurs already use digital invoices, despite the many benefits, such as time savings and lower costs.
3. Government support
From policy measures that reduce administrative burdens to initiatives that help entrepreneurs digitise, the government plays a crucial role in supporting the businesses that drive our economy.
One important way the government can support SMEs is by offering financial support and tax breaks. This can range from subsidies for innovation and digitalisation to tax rebates for companies investing in sustainable technologies or energy efficiency.
Besides subsidies, the government can support SMEs by reducing administrative burdens. Entrepreneurs often spend much of their time on paperwork and compliance with complex regulations. Simplifying administration, reducing reporting obligations and digitising processes can save entrepreneurs time and money.
