Small and medium-sized enterprises (SMEs) accounted for 99.6% of all companies in Slovenia in 2024. As the backbone of the national economy, they generated 61.3% of total turnover and employed 65.7% of the workforce.
Following a period of strong economic growth and intensified borrowing, financing via loans slowed considerably. The outstanding stock of SME loans declined by 7.2% over 2023 and 2024, driven by reduced demand and a drop in new loan issuance.
By the end of 2022, financing conditions for the non-banking sector had deteriorated significantly. Interest rates for SMEs rose from 2.3% in 2021 to 5.2% in 2024, although they began to decline in the second half of 2024 as monetary policy eased.
According to the Bank of Slovenia’s annual survey on access to finance, firms reported improved access for the second consecutive year in 2024, though conditions remained less favourable than in 2021. While financing continued to pose challenges for the business sector amid the ongoing economic uncertainty and limited availability of government incentives, firms observed some improvements in the availability of finance, alongside declining inflation and financing costs. Nevertheless, many remained cautious, with fewer firms applying for external funding.
The government policy response has been primarily through the SID Bank and the Slovene Enterprise Fund. The SID bank, the national development bank, acts as a (1) fund of funds manager for European cohesion funds (ERDF) and manages the EU funds directly or indirectly through the commercial banks or Slovene Enterprise Fund and (2), implements several loan funds. Additionally, the Slovene Enterprise Fund acts as a public fund and a financial institution of the Ministry of Economy, Tourism and Sports, offering favourable financial resources; grants (for innovative startups, for digital transformation of SMEs, etc.); seed capital; guarantees for bank loans with subsidised interest rates; and microloans.
In addition to bank lending from commercial banks and the SID Bank, the government of the Republic of Slovenia has also implemented a range of measures to fill the gaps in SME access to finance and complement other financial measures. These policies include:
Blended finance for innovative startups (EUR 2.1 million per year for 40 innovative startups). The government provide grants blended with mentoring and training.
Blended finance for early-stage start-ups. The government provide seed capital in the form of convertible loans and equity capital blended with mentoring and training.