Record number of entrepreneurs in Belgium amid economic challenges

In 2023, Belgium recorded an all-time high number of small and medium-sized enterprises (SMEs). However, economic challenges are mounting. Business organisation UNIZO calls for structural policy measures. ​ 

According to a new report by business organisations UNIZO, GraydonCreditsafe and UCM, the number of SMEs in Belgium rose by 2,1 per cent in 2023, reaching a record 1.33 million businesses - ​ an increase of nearly 30 per cent over the past decade. 

The majority of Belgium’s SMEs are based in Flanders, which accounts for 54.5 per cent of the total. A significant portion of these businesses are young - one-third are less than five years old, and almost half are under a decade old. 

Entrepreneurship is thriving, with many individuals opting for self-employment due to a tight labour market and the growing popularity of freelance work. Notably, 89.5 per cent of Flemish SMEs now operate without employees, a record high.

Rising costs

Despite this surge in entrepreneurship, rising operational costs are straining businesses. Labour costs alone have risen by nearly 16 per cent over the past three years, while energy prices and interest rates remain significantly higher than pre-pandemic levels. 

As a result, Belgium is experiencing record-high business closures and job losses. The report highlights that 21 per cent of Flemish SMEs are facing severe financial difficulties and require additional capital to continue operations. Many businesses are being forced to cut investments, reduce product offerings, or even lay off staff to stay afloat.

Policy support

UNIZO and other business groups are calling for structural policy measures at both the regional and federal levels to support SMEs. They advocate for administrative simplifications, faster permit processes, and financial incentives for green and digital investments. 

Additionally, they urge the government to address Belgium’s automatic wage indexation system, arguing that it places a heavy burden on businesses.

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