More and more domestic SMEs are turning to the possibility of exporting

After an average 5 percentage point decline in the previous cycle, Hungarian SMEs are now seeing growth in export revenues. Based on the Q2 2025 K&H SME Confidence Index, the share of revenue from exports rose by two percentage points in the past three months, now accounting for 12% of turnover on average. While smaller companies are less engaged in foreign sales, the share of firms not exporting at all has decreased by 6 percentage points (to 64%). This means that about one-third of SME leaders now engage in export, with averages lifted by businesses founded specifically with export in mind. According to the latest data, 3% of respondents focus exclusively on export.

“It is important for businesses to be open to exploring new markets, as this is the key to long-term growth and profitability. Companies with multiple revenue streams are better positioned to handle economic challenges. K&H supports SMEs in development and expansion with innovative banking solutions, training materials, and tenders. Our goal is to make banking easy and fast, so entrepreneurs can spend more time on their business.”

– said Ildikó Oraveczné Németh, Head of Marketing for Retail and SME Segment at K&H.

Challenges in domestic trade

Hungarian SMEs face several difficulties that make them more open to exports. Company leaders most often mention lack of demand (36%) as a barrier to business. This is followed by labor or skills shortages (32%), and rising contributions, taxes, and wages (32%). Compared to the same period in 2022, twice as many leaders now see taxes and wages as negative factors. Inflation was also cited as an obstacle by 30%, having risen to 4.6% in the first half of the past quarter before easing to 4.3% in July. In contrast, the share of those complaining about material shortages dropped significantly by 20 percentage points compared to 2022, standing at just 6% today.