Sándor Demján Program – Is it really effective support for the SME sector or a state crutch?

Small and medium-sized enterprises (SMEs) form the backbone of the Hungarian economy, as they account for more than 99% of enterprises. These companies provide employment for more than two-thirds of the workforce and contribute significantly to the performance of the national economy. Despite all this, the sector faces several challenges that may affect its competitiveness and growth potential in the long term. The economic importance of SMEs is not only in employment, but also in the production of added value. The SME sector generates more than 50% of the domestic GDP, but exports are only responsible for 28% and much less than half of the investments are realized here – while they also play an important role in the field of innovation and the development of local economies. However, domestic enterprises often face structural problems such as technological lag or lack of resources, which limit their growth potential. The current situation and challenges of SMEs Although SMEs are key players in the Hungarian economy, their productivity lags behind the EU average. One of the main reasons for this is the limited access to capital, which makes it difficult to implement the necessary developments and digitalization steps. In addition to financing difficulties, players in the sector often struggle with a shortage of specialists, a significant administrative burden and the challenges of adapting to a rapidly changing economic environment. In addition, there is the phenomenon of the “glass ceiling”, meaning that many small businesses would be able to grow gradually, but becoming a medium-sized enterprise encounters numerous obstacles.