Financing SMEs and Entrepreneurs 2026: Hungary
Table of contents
The volume of GDP increased by 0.5% in 2024. Based on data adjusted for calendar effects, the economic performance increased by 0.6% compared to the previous year.
In the first quarter of 2025, the Hungarian economy contracted slightly, by 0.4% on an annual basis and by 0.2% compared to the previous quarter, dragged down by weak external demand and industrial exports, and by still sluggish investment performance.
The average annual inflation rate was 3.7% in 2024.The decline in global inflation came to a halt in the autumn of 2024, with consumer price inflation starting to accelerate again in several countries, including Hungary.
Although the investment rate has declined in recent years, it remains high, and Hungary remains an attractive investment destination. The investment rate has stabilised at a high level because of recent time’s high-volume investments, reaching around 24% in 2024, one of the highest in the EU.
However, investment in several sectors is being held back by weak demand, particularly in manufacturing and construction, which is not yet being offset by the huge amount of working capital investment. Nevertheless, the Demján Sándor Programme for SMEs may improve the investment climate for businesses.
At the end of 2024, 707 329 enterprises operated in Hungary, 99.9% of which (706 380 enterprises) qualified as SMEs. Hungarian SMEs are responsible for 70.1% of the total employment and 56.8 % of the value added.
The total corporate loan portfolio of credit institutions increased by 1.6% and the SME loan portfolio increased by 1.9%in 2024. This shows a continued slowdown in the portfolio growth rate.
Although the total loans outstanding remained nearly unchanged, the portfolio of foreign currency loans continued to grow in 2024.
The lending activity of the banking system corresponds to the cyclical position of the economy. Corporate lending is currently subdued, primarily due to insufficient demand factors.
2024 brought a seemingly strong recovery for the Hungarian venture capital and private equity market, especially when compared to the low baseline of 2023. While the top-line numbers for 2024 suggest a return to growth, the underlying data, especially the reliance on one large buyout, indicates that it is not yet in full recovery. Rather, 2024 may mark the first signs of stabilisation and renewed investor interest.
The focus of the new economic policy announced by the Government through Government Resolution 1311/2024. aims to put the economy is on a higher growth path in 2025. According to the government decision, in order to dynamise the economy, the performance of Hungarian-owned SMEs must be further strengthened so that they contribute more to growth.
In order to achieve this, the Government is supporting the development of domestic SMEs with a total of nearly HUF 2 000 billion through the Demján Sándor Programme, which consists of 9 nmeasures implemented as part of the New Economic Policy Action Plan.
The outbreak of the large-scale aggression of Russia against Ukraine and the related energy crisis have posed new challenges for the economy. The difficulties brought a slight downturn, but the Hungarian economy has been stabilised in the fourth quarter of 2024. Growth was mainly driven by services, while industry, construction and agriculture showed subdued performance. Consumption continued to expand, supported by rising real wages and government tax cuts. (Macroeconomic Overview, 2025)
Hungary's GDP in 2024 was 6.4% above its pre-pandemic level in 2019 (EU: 5.4%; EA: 4.8%), despite obstacles to the disbursement of EU recovery funds.The volume of GDP increased by 0.5% in 2024, and adjusted for calendar effects, the economic performance increased by 0.6% compared to the previous year.
In the first quarter of 2025, the Hungarian economy contracted slightly, by 0.4% on an annual basis and by 0.2% compared to the previous quarter, dragged down by weak external demand and industrial exports, and by still sluggish investment performance.
Overall, weak demand is holding back investment in several sectors, particularly in manufacturing and construction, which is not yet being offset by the huge amount of working capital investment. Nevertheless, the Demján Sándor Programme for SMEs may improve the investment climate for businesses.
The Hungarian labour market has proved resilient not only to the coronavirus crisis, but also to the energy crisis. In 2024, the employment rate (15-64 year olds: 75.1%) reached a record high, while the unemployment rate is well below the EU average at 4.5% (EU: 5.9%; EA: 6.4%).
The average annual inflation rate was 3.7% in 2024. The decline in global inflation came to a halt in the autumn of 2024, with consumer price inflation starting to accelerate again in several countries, including Hungary.
Although the investment rate has declined in recent years, it remains high and Hungary remains an attractive investment destination. In 2024, overall gross fixed capital formation declined by 11.3%, driven by a 21% drop in public investment. The rate has stabilised at a high level as a result of past high investment, reaching around 24% in 2024, one of the highest in the EU.
According to the estimated data of the SME Performance Review 2025 of the European Commission, at the end of 2024, 707 329 enterprises operated in Hungary, 99.9% of which (706 380 enterprises) qualified as SMEs. Hungarian SMEs are responsible for 70.1% of the total employment and generating 56.8 % of the value added. (European Commission, 2025[1])
In 2024, SMEs employment in Hungary declined with a relatively small contraction of -0.1%. Similarly, SME real value added dropped by -3.2%. The most affected NACE sections are Manufacturing (C) and Water supply, sewerage, waste management, and remediation activities (E). On the other hand, some services sections, like Accommodation and food services (I) and Information and communication (J), managed to grow substantially in both indicators.
Tourism, the third biggest industrial ecosystem in Hungary, managed to grow its SME employment by 2.8%, the highest growth among all 14 ecosystems. Furthermore, it also grew by 1.0% in SME real value-added terms, making it the ecosystem with the third highest growth after both Digital and Cultural and Creative Industries, which increased by 5.9% and 1.2%, respectively.
The European Commission’s data on the business economy ensures comparability between EU member states (Table 2).
Source: These are estimates for 2024 produced by JRC, based on 2008-22 figures from the Structural Business Statistics Database as well as provisional data for 2023-2024 from the Structural Business Statistics Database (2023 figures for certain indicators), the National Accounts database and the Short Term Business Statistics Database (all Eurostat). The data cover the 'non-financial business economy', which includes industry, construction, trade, and services (NACE Rev. 2 sections B to J, L, M, N & S95), but not enterprises in agriculture, forestry and fisheries and the largely non-market service sectors such as education and health. The following size-class definitions are applied: micro firms (0-9 persons employed), small firms (10-49 persons employed), medium-sized firms (50-249 persons employed), and large firms (250+ persons employed).
The total corporate loan portfolio of credit institutions increased by 1.6%and the SME loan portfolio increased by 1.9%in 2024. Even with this growth, this shows a continued slowdown in the portfolio growth rate, in contrast to other countries in the region, where corporate loan dynamics turned up in 2024 H2. The total value of new corporate loan lending decreased by annual comparison. With subsidised loan schemes being phased out and becoming more targeted, the share of subsidised loans declined substantially within new disbursements and the total loan portfolio (MNB Financial Stability Report, 2025 May).
Although the total loans outstanding remained nearly unchanged, the portfolio of foreign currency loans continued to grow in 2024. The expansion of FX lending was largely linked to companies with natural foreign currency coverage. The average interest rate (payable by the customer) on newly disbursed loans is higher than the average interest rate on loans outstanding, which may pose a refinancing risk, especially for subsidised loans maturing in the near future. However, the portfolio of these loans is not significant.
The lending activity of the banking system corresponds to the cyclical position of the economy. Corporate lending is currently subdued, primarily due to insufficient demand factors. Banks noted declining demand for investment loans in 2025 Q1, and they do not expect a significant recovery in 2025 Q2-Q3 either. The Central Bank of Hungary (MNB) initiated discussions with credit institutions on the possibilities of increasing corporate lending to support the economy. With the improvement of real economic processes and the expansion of the Demján Sándor Programme, it is predicted that the corporate loan portfolio will increase by 6%in 2025.
The annual dynamics of SME lending, which better reflect the basic processes, lagged behind the large company sector in the first three quarters of the year, and then following the latter’s significant slowdown, both segments closed 2024 with annual growth of less than 2%. Corporate lending dynamics – calculated by eliminating the financial and insurance sector – amounted to 4.2 per cent at the end of 2024.
With the end of the subsidised loan schemes, the share of subsidised loans decreased to 35%by the end of 2024. Similar processes were observed in the SME sector: in 2019, the share of subsidised loans in the total portfolio was 20%, before peaking at about 55%at the end of the first quarter of 2024 and then decreasing to 51%by the end of the year. The domestic guarantee portfolio as a proportion of GDP remains high.
The value of new contracts has decreased by annual comparison. In 2024, new contracts amounted to HUF 3 500 billion in the credit institution sector, which was 11%less than the 2023 disbursements.
The decline primarily affected current asset and other loans, while the new contracting of investment loans exceeded the 2023 disbursement level – a low base figure – by 8%, but still lags behind the 2021-22 disbursements. In the micro, small and medium-sized enterprise segment, the volume of new loan contracting decreased by 6% in 2024, while in the large company segment it decreased by 16%. With the phasing out and narrowing of the subsidised loan schemes in mid-2024, the share of loans contracted on a non-market basis within new disbursements decreased substantially, from 35% in 2023 to 19%in 2024. These products played an even greater role in the SME loan market, where their share fell from 47%to 28%.
Source: (MNB, 2025 May, Trends in Lending, based on bank responses)
The average interest rate charged to SMEs is 10.24% and the spread between interest rates charged to SMEs and to large enterprises is 0.92 per centage points in 2024.
The lending activity of the banking system corresponds to the cyclical position of the economy, and the current subdued activity in corporate lending stems mostly from insufficient demand factors, rather than supply factors that are hampering lending. According to questionnaire-based surveys, the business and investment activity of domestic companies is dampened mainly by subdued consumer demand, the lingering effects of inflation and uncertainty.
The ratio of foreign currency loans within the total loan portfolio has increased. The foreign currency loan portfolio is typically tied to companies with natural coverage.
The renewal of loans outstanding may pose a risk under permanently higher real interest rates. (MNB, 2025 May).
According to the Lending Survey of Hungarian National Bank, with unchanged standards on corporate lending, banks reported declining demand for long-term loans. Looking ahead, a quarter of the banks expect demand to pick up for credit as an effect of the Demján Sándor Programme starting in January 2025, which they expect to be felt in both company sizes, with demand expected to pick up mainly for HUFloans.
The government announced the Demján Sándor Programme in October 2024, to contribute to the development of the SME sector and stimulate demand for investments. It will inject HUF 2000 billion into the economy
Venture Capital and Private Equity
2024 brought a seemingly strong recovery for the Hungarian venture capital and private equity market, especially when compared to the low baseline of 2023 (HVCA, 2025).
During 2024, EUR 606.0 million was invested into Hungarian companies through 56 transactions. There was a 52.5% decrease in the total number of transactions, and 357.2% increase in the total invested amount compared to 2023. As a result, the average deal size increased by 863.3% from 2023 to 2024. The total investment in 2024 marked the highest value reported in the past decade, driven by a single exceptionally large buyout amounting to EUR 483.0 million. This single deal distorts the overall picture and should not be interpreted as a broad-based market rebound just yet.
That said, there were some encouraging signs beneath the surface. Growth-stage investments gained momentum, and Hungarian companies in this phase received on average 35.4% more capital when foreign investors were involved. This suggests continued interest in scalable opportunities, even if investor caution still lingers. The Consumer Goods and Services and ICT sectors remained dominant, capturing 86.1% of total capital invested and 37.5% of all transactions, highlighting where investor conviction is strongest.
In 2024, 74 investments were executed by Hungarian investors either in the domestic market or abroad, half the number of investments in 2023Total value of investments decreased from EUR 154.6 million to 126.6 million between 2023 and 2024. However, the reported average deal size increased 46.1% compared to 2023, showing an increase in appetite for larger investments by Hungarian VC-s. Start-up and growth-stage companies continued to attract most of the capital, while average deal size in the start-up and rescue/turnaround stages rose sharply by 40.8% and 119.3%, respectively.
Fundraising activities also bounced back, with EUR 227.7 million raised—more than double the last reported figure from 2022. This was driven primarily by capital from the Central and Eastern Europe (CEE) CEE region and increased participation from government agencies, fund-of-funds, and institutional managers. Traditional sources like banks and family offices saw their relative contributions decline.
While the top-line numbers for 2024 suggest a return to growth, the underlying data, especially the reliance on one large buyout, indicates that Hungary is not yet in full recovery. Rather, 2024 may mark the first signs of stabilisation and renewed investor interest. Hopefully 2025 will bring more broad-based growth and consistent capital flows across all stages and sectors of the Hungarian VC and PE ecosystem.
Source: Invest Europe, 2025
The focus of the new economic policy announced by the Government with Government Resolution 1311/2024. (X. 21.) is to ensure that the economy is on a higher growth path in 2025. According to the government decision, in order to dynamise the economy, the performance of Hungarian-owned SMEs must be further strengthened so that they contribute more to growth.
In order to achieve all of this, the Government is supporting the development of domestic small and medium-sized enterprises with a total of nearly HUF 2 000 billion through the Demján Sándor Programme, which consists of 8+1 measures implemented as part of the New Economic Policy Action Plan, as a result of the budget increases.
The programme aims to increase the online presence of businesses, promote their presence on social media, and facilitate their entry into e-commerce. The programme primarily targets businesses that do not yet have a website or whose internet interface is inactive.
The programme was announced in December 2024 with a budget of HUF 9 billion.
40 suppliers are available to businesses as service providers. The number of businesses that have applied for the service is 7 955, with a total support request of HUF 10.21 billion.
Based on data from May 14, 2026, a total of 5 724 vouchers entitling to support were issued, of which 4 752 have already been redeemed by the winning companies.
A second round was announced with the budget of HUF 1.2 billion. The number of successful applicants so far 674 applications, totaling HUF 1.09 billion.
As of November 1, 2024, the annual interest rate payable by customers for investment and leasing-type loan products of the Széchenyi Card Programme (SZKP) has been reduced to 3.5 %.
The interest rate reduction continued in February 2025: as of February 17, the interest rate on investment and leasing-type loans was reduced by another 0.5%, from 3.5% to 3%. In addition, other SZKP products have also become more favourable, and they can be used at an interest rate of 4.5 % instead of 5 %. The aim of the measure is to launch investments, which can accelerate economic growth.
Based on data as of May 10, 2026, the number of loan applications received since the start of the interest rate reduction exceeded 40 thousand, and the requested loan portfolio was HUF 1 940.7 billion.
EXIM Bank has relaunched its previously successful products, which can be used by both exporting and non-exporting companies for investment, green investment and leasing purposes, for which the Government is investing HUF 900 billion.
The six products offered by EXIM Bank include the Future Exporters Investment and Green Investment Loan, the Export Boosting Investment Loan, the Future Exporters Investment Loan, the Future Exporters Leasing, the Future Exporters Working Capital Loan, and the Future Exporters Real Estate Development Working Capital Loan.
Within the framework of the Demján Sándor Export Promotion Loan Programme, a total of 2801 companies received transactions in value of HUF 441.63 billion based on data as of May 11, 2026, which can significantly contribute to strengthening their competitiveness.
The Capital Programme supports foreign investments, company formations, and company acquisitions (investments), which help increase the competitiveness of enterprises by acquiring new markets and expanding, by setting them on a growth path, and by diversifying their sources of income and risks.
The programme was announced in December 2024 with a budget of HUF 60 billion, and its goal is to develop Hungarian multinational companies and national champion enterprises.
Under the programme, each company can apply for development capital of USD 1-25 million, and it is expected that the enterprise will provide at least 30 % of the investment costs as its own funds. The expected return on capital investment is the minimum level of return typical of the given industry.
So far, a total of 4 applications have been accepted under EXIM’s outbound investment loan scheme, totalling HUF 213.1 billion, which has already been disbursed. Nemzeti Tőkeholding has concluded 1 transaction so far, with a total value of HUF 16.7 billion.
EDIOP Plus (GINOP Plusz)-1.4.3-24 “SME Technology Plus Loan Programme” and
EDIOP Plus (GINOP Plusz)-1.4.4-24 “SME Technology Plus Budapest Loan Programme”
A 0% interest loan for the technological development of enterprises is available throughout the country. GINOP Plusz-1.4.4-24 is available for Budapest enterprises with a budget of HUF 73.2 billion, and GINOP Plusz-1.4.3-24 is available for companies operating in the rest of the country with a budget of HUF 155.5 billion.
Within the GINOP Plusz SME Technology Plus Loan Programme, a working capital loan product was launched on July 15, 2025 under the name "B" component, with a budget of HUF 70 billion. Component B closed on January 15th 2026, due to oversubscription.
The loan can be used, among other things, for the purchase of new equipment, technologies supporting green energy, and electric vehicles, for digitalisation-related developments, real estate-related investments, and training and consulting services can be used.
Within the framework of the two schemes, based on data as of May 12, 2026, 1 110 applications were submitted, worth a total of HUF 55.4 billion, of which nearly HUF 27.8 billion were contracted within the framework of 589 projects. Within B component 4 865 applications were submitted, in worth HUF 169.99 billion.
EDIOP Plus (GINOP Plusz)-1.4.5-25 “National Champions – Single-operation Combined Loan Programme Aiming at Green and Digital Transition”
The so-called single-operation combined loan programme, which also includes a non-refundable support element, aims to support the technological change and product development of exporting and supplying enterprises, specifically by applying digital transition and energy-efficient solutions.
The budget of the programme is HUF 155.61 billion, which targets enterprises in less developed regions. The support is available as a combination of an interest-free investment loan with a maturity of over one year and a non-refundable support.
The financing amount can be a minimum of HUF 150 million and a maximum of HUF 1 000 million, of which a maximum of 45% can be claimed as a non-refundable grant.
Submission of applications is available for businesses from June 23, 2025.
Based on data from May 12, 2026, 122 applications were in the process of being submitted as unrecorded claims under receipt, worth HUF 52.7 billion.
GINOP Plusz-1.2.4-25 “Support for micro and small enterprises in the most disadvantaged regions and in the Free Enterprise Zones”
Within the framework of the call with a budget of HUF 150 billion projects of micro and small enterprises operating in the four most disadvantaged regions and in the settlements of the Free Enterprise Zones (SZVZ) will be supported.
The beneficiaries can use the non-refundable support of at most HUF 150 million mainly for the purchase of new equipment and machinery, the development of new technological systems and capacities, information technology developments, real estate-related investments, and construction of a new property. In addition, the use of consulting services and the purchase of inventory can also be counted in the programme.
The intensity of the support is 50 %, so half of the investment is provided by the state with co-financing from the European Union.
Submission of applications was available for businesses from May 7, 2025 to April 30, 2026.
Overall 4 172 applications were submitted worth HUF 156.9 billion.
The first elements of the administrative reduction measures within the Demján Programme have already been implemented in the first half of 2025: the mandatory audit threshold has been increased from HUF 300 million to HUF 600 million. This change affects 16,025 enterprises, i.e. 4.4% of partnerships. In addition, the threshold for choosing individual tax exemption has been increased from HUF 12 million to HUF 18 million, which will help an additional 30,000 companies in addition to the 830,000 enterprises currently exempt from tax.
In addition to residential consumers, micro-enterprises are also entitled to use the universal electricity service from January 1, 2025, so in addition to residential consumers, micro-enterprises can also receive electricity at the cheaper, reduced-utility price for consumption up to 4,606 kWh/year.
Source: See Table 3
References
Ministry for National Economy, Macroeconomic Overview, June 2025
European Commission, SME Performance Review, 2025
Hungarian National Bank, Trends in Lending, February, May 2025
https://www.mnb.hu/en/publications/reports/trends-in-lending
Hungarian National Bank, Financial Stability Report, May 2025
https://www.mnb.hu/en/publications/reports/financial-stability-report
Hungarian Venture Capital Association (HVCA) Investment Monitoring Report FY 2024
https://www.hvca.hu/documents/HVCA_report_2024_final.pdf
Invest Europe, CEE Activity Report 2024
https://www.investeurope.eu/research/publications/?date=all&typeOfData=Activity%20data&tag=Research
https://ec.europa.eu/eurostat/databrowser/view/tps00203/default/table?lang=en
https://www.ksh.hu/heti-monitor/foglalkoztatottak-munkanelkuliek.html
https://ec.europa.eu/eurostat/databrowser/view/teina515/default/table?lang=en
https://ec.europa.eu/eurostat/databrowser/view/tec00114/default/table?lang=en,
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Please cite this publication as: OECD (2026), Financing SMEs and Entrepreneurs 2026: An OECD Scoreboard, OECD Publishing, Paris, https://doi.org/10.1787/075d8058-en
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