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Number of SMEs up 4.1% in 2018

There were 748,951 small and medium-sized businesses operating in Hungary in 2018, up 4.1% from a year earlier, state news wire MTI reports, citing a summary of data by the Central Statistical Office (KSH).

Within SMEs, microbusinesses accounted for 94.6%, small businesses for 4.6% and medium-sized businesses for 0.7%. The ratios were practically the same as in 2017.

In terms of economic sectors, 78.5% of SMEs were active in the service sector and just 7.1% in the industry. Data shows that the bigger SMEs account for a larger share in SMEs active in agriculture, industry and construction, than their overall share.

SMEs had combined revenue of HUF 45.5 billion in 2018, rising by 10.2% from a year earlier.

SMEs share of total revenue in the business sector was also slightly down, at 41.6%. Within SMEs, microbusinesses had revenue of HUF 20 million on average, small businesses had HUF 452 mln and medium-sized businesses HUF 2.86 bln.

In terms of added value, SMEs generated 45.7% of total added value in the business sector in 2018. SMEs generated gross added value of HUF 11 bln in 2018, up 21.1% from the previous year, with microbusinesses generating HUF 5.9 mln of added value on average, small businesses HUF 105 mln and medium-sized businesses HUF 590 mln.

SMEs accounted for 30% of total investments in the business sector and for 21% in the economy as a whole. Investments by SMEs were up 29% in 2018 while total investments in the economy jumped by 18%.

SMEs employed around 2 million people on average in 2018, or 64.9% of the total number of people employed in the business sector. Microbusinesses employed 54% of all workers employed by SMEs.

Within the SME sector, almost 68.5% of total revenue was generated by service companies, 27% by industrial companies and 4.5% by agricultural companies.