2022 SME COUNTRY FACT SHEET

SLOVAKIA
Brief introduction
SME DEVELOPMENT 2020-2021
 In 2021, SMEs in Slovakia grew by 3.6% in value added and declined by 0.1% in
employment. Large firms achieved significantly stronger growth in value added (13.0%), but NUMBER OF
also experienced a sharper drop in employment (2.8%). ENTERPRISES -0.5%
 The digital ecosystem is one of the few ecosystems in Slovakia that grew in both 2020 and
2021. SME value added in this ecosystem increased by 2.6% in 2021 and 1.2% in 2020, NUMBER OF
while SME employment grew by 6.3% and 2.3% respectively. PERSONS
EMPLOYED
-0.1%
 Based on data from early 2022, it was expected that this year SME value added and SME
employment in Slovakia would grow strongly by 12.3% and 2.5% respectively, but Russia’s
war of aggression against Ukraine will affect these estimates. VALUE ADDED +3.6%
SMEs in the ‘non-financial business sector’. Estimates produced by JRC.

ENTERPRISES
ENTERPRISES PERSONS
PERSONS EMPLOYED
EMPLOYED VALUE ADDED
VALUE ADDED
NUMBER SHARE NUMBER SHARE € BILLION SHARE

SMEs 1 169 936 73.3%

497 173 99.9% 24.5 57.6%
(0 -249 persons employed)

LAR GE E N TE R P R IS E S 26.7% 42.4%

515 0.1% 425 630 18.1
(250+ persons employed)
The data for 2021 are estimates produced by JRC, based on 2008-2019 figures from national and Eurostat databases.

SME-RELATED STRENGTHS AND CHALLENGES

SME-RELATED STRENGTHS AND CHALLENGES
KEY STRENGTHS
 Slovakia has an open economy, well integrated in the European
value chains. The country has the highest trade integration in the
single market for goods and performs above the EU average in
trade of services. However, SMEs do not benefit fully from the spill
over effects, the opportunities for internationalisation and
knowledge transfer.
 Starting a business in Slovakia costs less than the EU average, but
is more burdensome. On the positive side, the growth of the number
of small and medium-sized enterprises operating in high-tech
sectors of the economy continues.
 Slovakia performs well in early stage entrepreneurial activity and
entrepreneurial intentions. Nevertheless, the status and the
attractiveness of the entrepreneurship could be further improved.
OTHER KEY SME-RELATED BRIEF INSIGHTS
90% of SMEs in Slovakia use their website to
describe their goods or services. However, only just
over half of Slovak SMEs reach at least the basic
level of digital intensity, according to the Digital
Economy and Society Index 2021.
In 2021, Slovakia launched the implementation of
the Recovery and Resilience Plan (RRP). In the
coming year, SMEs should benefit from improved
business environment, support for R&I, and for their
green and - importantly - digital transition.
The level of digital skills is low. As reported in the
national RRP, the share of the population (aged 16
to 74) with at least basic digital skills was 54%, and
27% with higher than basic digital skills. There was
no systemic approach for the implementation of
adult education in the field of digital skills.
The SME Performance Review monitors SME-related developments across the EU. For more information,
please see: https://ec.europa.eu/growth/smes/sme-strategy/performance-review_en
KEY CHALLENGES
 Innovation activity of SMEs in Slovakia remains insufficient. According
to Eurostat data, only 29% of small and medium-sized enterprises
carried out innovations. The European Innovation Scoreboard defines
Slovakia as an “Emerging innovator” and its performance relative to
the EU has declined over time. Slovakia is one of the countries with
below-average share of SMEs with product or process innovations.
 The business environment in Slovakia has been characterised by high
bureaucratic and administrative burdens. According to the Slovak
Business Agency survey, 94% of SMEs consider legislative and
regulatory instability to be an obstacle for the continuation and further
growth of their business. A number of key reforms to improve business
environment are ongoing under the Recovery and Resilience Plan.
 Skills shortages and mismatches are a major challenge for investment
and growth of the Slovak SMEs. They will also be key for the
successful green and digital transition of the economy.
A higher share of Slovak SMEs than of their EU
counterparts received more than half of their turnover
from the sale of green products or services. The same
is true in terms of the share of SMEs that offer green
products and services (about 41% in Slovakia, thus
above the EU average of around 32%).
Measures to support learning and job mobility, included
in the Recovery and Resilience Plan, aim to alleviate
the growing demographic pressure. Removing barriers
for foreign workers and students through a simpler
process of obtaining work and residence permits will
help towards meeting the demand for highly qualified
professionals to fill the corresponding available posts
on the Slovak labour market and will therefore help
attract talent.