Qonto, one of Europe’s leading business finance solution for SMEs and freelancers, has published its latest barometer on the state of Europe’s small and medium business landscape in 2024. The report was created in collaboration with YouGov, in a survey among +5,000 senior decision-makers for SMEs across France, Germany, Italy, Spain and the UK.
The survey reveals a resilient European SME landscape despite economic challenges. The findings highlight several key trends: widespread AI adoption across European SMEs but with the UK trailing behind its European counterparts; a large proportion of businesses claiming climate action, but very few considering it a top priority; and an evolving financial services landscape where digital banking solutions now surpass traditional banks in adoption rates. The report also shows significant progress in diversity initiatives, while talent acquisition strategies increasingly focus on competitive compensation and flexible working arrangements.
The findings reveal a robust business landscape across European markets, with 64% of companies meeting their 2024 targets, and 10% surpassing them, reflecting strong business resilience despite economic challenges.
Globally, company size emerges as a critical success factor, with businesses turning over €100 million+ being three times more likely to exceed targets than those under €100K (23% versus 7%).
British businesses show promising results, with 64% on target, and 11% above target – one point above the European average.
The analysis confirmed widespread AI adoption, with 67% of European SMEs already implementing AI tools. Company characteristics significantly influence adoption rates: larger businesses show higher implementation, while companies of under five years lead with 75% adoption compared to 61% for businesses over 35 years old. Financial services and IT/Telecoms emerge as leading sectors.
Despite the increased adoption of AI, data privacy remains the predominant concern, cited by one in three businesses. The medical and healthcare sector shows particularly acute data privacy concerns, with 38% citing challenges in balancing AI implementation with privacy considerations – the highest among all sectors studied.
SMEs in Britain have shown the lowest AI adoption rate among all markets studied, with only 58% currently using AI tools and 31% having no implementation plans for 2025. This is a stark contrast to German SMEs, who demonstrate the highest AI adoption rate at 78%. The resistance is particularly strong among smaller companies, with 36% of businesses with two to 49 employees having no AI adoption plans.
Qonto’s findings demonstrate an interesting environmental approach globally among European SMEs, with 49% already implementing carbon reduction measures and one in three planning future action. However, only 9% consider it a top priority, and 21% have no carbon reduction plans.
This being said, the total 79% commitment rate aligns with the European Commission’s Green Deal objectives of achieving carbon neutrality by 2050 and 55% emission reduction by 2030. SMEs in the UK demonstrate strong practical engagement, with 53% already taking action – the second-highest implementation rate out of the analysed markets. While 78% are committed to carbon reduction and 11% consider it a top priority – the highest out of the European markets surveyed – 22% have no plans to act.