Financing SMEs and Entrepreneurs 2026: Norway
Table of contents
In 2023, nearly 97% of employer firms in Norway had between 1 and 49 employees, with those employing 1 to 9 people accounting for about 80%. The definition of small and medium-sized enterprises (SMEs) in Norway differs from that used in most EU countries. To enable cross-country comparison and ensure that the Scoreboard indicators are also relevant to Norway, Statistics Norway analysed the Norwegian SME population using two thresholds: firms with fewer than 250 employees and those with fewer than 50 employees, in line with the indicators covered in the OECD Scoreboard.
The outstanding stock of SME loans in Norway increased by around 31% over the past five years, from NOK 652 billion in 2020 to NOK 856 billion in 2024. In 2024, SMEs accounted for nearly 39% of total business lending. More than 82% of SME loans in Norway are long-term, indicating a strong focus on investment and growth financing rather than short-term liquidity. The predominance of long-term SME loans in Norway may reflect the structure of its banking system, where secured lending and strong collateral coverage are common, as well as public financing schemes that support long-term investment. It may also be linked to the importance of asset-intensive sectors, such as maritime and offshore supply, aquaculture and fisheries.
As with SME loans, venture and growth capital investments also recorded a strong increase over the same period, rising from NOK 102 billion in 2020 to NOK 179 billion in 2024 - an increase of approximately 75%. However, compared to the previous year, this represented a decline of around 10%.
Newly established enterprises are defined as those founded within the past two years. Between 2016 and 2024, the share of venture and growth capital allocated to new SMEs remained within the range of 16% to 21%.
Bankruptcies averaged 1 931 per year during the 2020–2024 period, with the highest number recorded in 2024 (2 622) and the lowest in 2021 (1 449).
In the fall of 2024, The Government launched the first Norwegian white paper on entrepreneurs and startups. The white paper provides an update on the status of entrepreneurship in Norway, and addresses policy areas and framework conditions relevant to entrepreneurs. These areas include the capital market, skills, social security schemes, competition policy, EU policy tools and the design of the policy instrument system. The white paper lists over 50 policy measures to improve further the conditions that help startups succeed.
Note: Bankruptcy data refers to SMEs excluding sole proprietorships. Figures for 2024 are based on preliminary data, except for the bankruptcy data, which is final.
Source: Statistics Norway. See Table 4 for details
Mainland GDP growth has slowed during 2023 as high inflation and interest rate increases continued to weigh on domestic demand, in 2024 Mainland GDP growth stood at 0.6%. Private consumption has weakened due to the rising cost of living, even though subsidies for households’ electricity bills and a decline in accumulated savings during the pandemic have provided support. Business investment growth has slowed.
After falling for four consecutive months, headline inflation increased to 4% in October 2023, as electricity prices edged up. Underlying inflation has also eased but remains elevated. A tight labour market is fuelling wage growth, with ongoing wage negotiations pointing to wage growth of around 5.5% in 2023.
Lower global energy prices are expected to weaken Norway’s terms of trade and related revenues. However, Norwegian exports should continue to benefit from strong energy demand from trading partners to replace mostly Russian gas supply, as well as buoyant energy services exports driven by higher investment in global energy production. Oil and gas investment is expected to increase in view of the number of submitted projects by the end of 2022, halting the decline in the past few years.
In 2023, there were a total of 371 392 enterprises in Norway, of which 242 302 were non-employer or non-reporting firms. Among employer firms, the vast majority were SMEs employing between 1 and 249 people, accounting for 99% of all firms with employees. Approximately 97% of employer firms had between 1 and 49 employees, while those employing 1 to 9 people represented about 80%.
Note: The table excludes companies within Standard Industrial Classification (SIC2007) sections A, D, K, O, P, Q, R, S, T and U
Source: Statistics Norway
When defining SMEs as firms having less than 250 employees - the definition used in several EU countries - virtually all Norwegian firms are classified as SMEs. To contribute to cross-country comparison and make the scoreboard indicators also relevant to Norway, Statistics Norway used firms with fewer than 250 as well as those with few than 50 employees to analyse the Norwegian SME population along the indicators covered in the OECD scoreboard. The distribution of employees in groups of companies, however, is not obvious. Some enterprises in large groups have therefore been included in the SME population, even though they belong to groups of companies with far more employees and would accordingly be classified as large enterprises.
SME loan data are derived from the Norwegian Tax Authority’s Income Statement form for non-financial limited and public limited companies, supplemented by the financial statements submitted to the Register of Company Accounts at the Brønnøysund Register Centre.
Over the five-year period from 2020 to 2024, SME loans grew at an average annual rate of 7%. By 2024, with a total of nearly NOK 856 billion, SMEs accounted for almost 39% of total business lending. Outstanding SME loans increased from NOK 831 billion in 2023 to NOK 856 billion in 2024, while total outstanding business loans grew from NOK 2 010 billion to NOK 2 198 billion over the same period. Total business lending expanded at a faster pace than SME lending, resulting in SMEs accounting for a smaller share of total business loans, declining from around 41% in 2023 to approximately 39% in 2024.
SME short-term loans decreased by 17% year-over-year in 2020 but rebounded with increases of 15% in 2021 and 18% in 2022. The growth in 2021 likely reflected the impact of government support measures implemented to mitigate the economic consequences of the COVID-19 pandemic. By 2024, short-term loans had risen sharply to nearly NOK 152 billion, representing a significant increase from the previous year. Outstanding short-term SME loans increased from NOK 126 billion in 2023 to NOK 152 billion in 2024, representing an increase of approximately 20%.
Long-term SME loans have shown steady growth between 2020 and 2024, rising from NOK 563 billion in 2020 to NOK 704 billion in 2024. In 2024, long-term loans accounted for 82% of total SME loans.
Figures for 2022 showed a larger increase in both short-term and long-term SME loans compared to previous years. This growth likely reflected rising inflationary pressures, as well as the depreciation of the Norwegian krone (NOK) against major currencies such as the US dollar and the euro.
Most equity investments in newly established enterprises, defined as those founded within the previous two years, are directed toward large enterprises with 250 or more employees. Between 2016 and 2024, the share of venture and growth capital allocated to new SMEs ranged from 16% to 21%, meaning that large enterprises accounted for the majority of venture and growth capital in Norway.
Note: Figures for 2024 are based on preliminary data.
Source: Statistics Norway
Bankruptcy data refer to enterprises that are undergoing actual bankruptcy proceedings, covering SMEs but excluding sole proprietorships. The statistics are based on information reported to the Register of Bankruptcies. Between 2020 and 2024, bankruptcies averaged 1,931 per year, peaking at 2,622 in 2024 and reaching a low of 1,449 in 2021. The unusually low number of bankruptcies in 2021 was likely due to government support measures, implemented alongside the temporary Reconstruction Act, aimed at alleviating financial difficulties during the COVID-19 pandemic.
In the fall of 2024, The Government launched the first Norwegian white paper on entrepreneurs and startups.
The white paper provides an update on the status of entrepreneurship in Norway, and addresses policy areas and framework conditions relevant to entrepreneurs. These areas include the capital market, skills, social security schemes, competition policy, EU policy tools and the design of the policy instrument system. The white paper lists over 50 policy measures to further improve the conditions that help startups succeed. For instance:
Exploring how the Governmental VC-fund, Investinor, can collaborate with pension funds to increase start-ups and SMBs' access to early-stage finance.
Strengthening existing financial schemes (grants and loans) targeted towards entrepreneurs and startups, including efforts to develop the Norwegian ecosystem for start-ups and
closing the gender gap amongst entrepreneurs.
Note: Figures for 2024 are based on preliminary data, except for the bankruptcy data, which is final.
Source: Statistics Norway
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