Financing SMEs and Entrepreneurs 2026: Portugal
Table of contents
In 2023, 512,751 non-financial companies accounted for 99.7% of Portugal's business sector, marking a 4.7% increase compared to 2022. Growth was recorded across several indicators: employment rose by 5.9%, turnover by 3.0%, gross value added (GVA) by 13.6%, and gross operating surplus (GOS) by 13.0%. In 2022, these figures were 5.2%, 24.1%, 18.6% and 24.2% respectively. Large enterprises outperformed SMEs in most economic indicators, except for turnover, where SMEs posted slightly higher growth (4.6% versus 1.1%).
In 2024, the total outstanding value of business loans declined by 1.5% compared to 2023. Nevertheless, the share of SME loans remained at around 80% of all business loans, maintaining the same level as in previous years. The Portuguese financial system experienced an increase in both short-term and long-term loans. Compared to 2023, short-term loans to SMEs increased by 1.07%, while long-term SME loans increased by 2.1%. Between 2021 and 2024, the proportion of government-guaranteed loans within the total SME loan portfolio fell from EUR 14.014 billion to EUR 5.88 billion, representing a 58.04% decrease. A further significant 43% decrease occurred between 2023 and 2024. Despite a general upward trend over the past two years, the average interest rate for SME loans fell to 5.14% corresponding to a relative decline of 6.4% in 2024, compared to 2023.
Investment in venture and growth capital has been highly volatile over the past 10 years. Investment reached EUR 103 million in 2024, marking a 5.8% increase on the EUR 97 million invested in 2023.
Late payments to SMEs increased by 11.8% in 2024 compared to 2023, rising from an average of 15 days to 17 days. Projections suggest that this trend will continue into 2025. Such delays strain SMEs' cash flow, hindering their growth and sustainability. According to “Intrum's 2025 Report for Portugal”, 35% of businesses reported that late payments are as problematic as they were during the pandemic, while 50% expect payment risks to increase. The payment gap widened across all segments: B2C increased from 9 to 12 days, B2B from 15 to 17 days, while the public sector remained at 15 days.
In terms of bankruptcies, 2024 closed with a 4.9% increase compared to 2023, with 2,299 bankruptcies recorded. This followed an increase of 12% in 2023 (rising from 1928 bankruptcies in 2022 to 2191 in 2023).
In 2024, the European Investment Bank (EIB) Group, comprising the EIB and the European Investment Fund (EIF), reaffirmed its commitment to Portugal by providing EUR 2.1 billion in new financing to support the country’s sustainable economic development. This financing contributed to the mobilisation of approximately EUR 4.9 billion in total investment, corresponding to around 1.7% of Portugal’s GDP. The funds were directed to strategic sectors, particularly to enhance access to finance for SMEs and start-ups. Close to 10,000 Portuguese companies benefited from this support, contributing to the preservation or creation of nearly 230,000 jobs. A significant proportion of the financing was allocated to projects in line with climate action and environmental sustainability goals, as well as to investments in vital public infrastructure, primarily in the health and transport sectors. More than EUR 1.1 billion was dedicated to clean energy initiatives, making a substantial contribution to Portugal's green transition.
Source: See Table 4.
In 2024, the Portuguese economy was significantly impacted by a complex interplay of factors, primarily the ongoing recovery from the pandemic, the escalating consequences of Russia's invasion of Ukraine and changes in central bank monetary policy. The war in Ukraine caused a sharp rise in energy and food prices, as well as broader inflationary pressures. This had a significant impact on consumer spending and business investment in Portugal. Nevertheless, the Portuguese economy grew by 1.9% in 2024, surpassing the euro area average and maintaining macroeconomic stability. However, economic activity slowed in 2024 due to weak investment dynamics, which were constrained by uncertainty and geopolitical tensions. Inflation fell further to 2.7% in 2024, down from 5.3% in 2023, bringing it closer to the European Central Bank's (ECB) medium-term target of 2%. Employment remained high, continuing to benefit from positive net migration. The unemployment rate remained stable at 6.4%. Preliminary annual results for 2024 show increases of 2.5% in exports and 1.9% in imports (compared to respective decreases of 1.4% and 4.0% in 2023), while the trade deficit increased by EUR 78 million to EUR 27.887 billion. Excluding fuels and lubricants, exports and imports increased by 2.0% and 3.0%, respectively, in 2024 (compared to +0.7% and +1.7%, respectively, in 2023). The trade balance deficit, excluding fuels and lubricants, increased by EUR 1.328 million to EUR 21.909 million in 2024.
According to the “2024 SME Portugal Fact Sheet” published by the European Commission, which is based on national and Eurostat databases, SMEs accounted for 99.7% of all companies in Portugal in 2023. They continued to recover from the pandemic, experiencing increases of 11.6% in value added and 2.0% in employment in 2024. However, because growth in value added is not adjusted for inflation, real growth was lower, at just 1.0%, amid high inflation. Small enterprises saw the largest increase in value added (14.5%), while SMEs were the only size-class to experience a decline in employment (0.8%). Forecasts suggest that SME employment in Portugal will grow by 1.8% in 2024, while value added is expected to increase by 4.8%.
Note: Includes only non-financial business sector. Companies with only one employee are excluded.
Source: Statistics Portugal, IP
Between 2023 and 2024, new business lending to SMEs increased by 12.3%. The proportion of new SME lending increased by 0.5% in 2023 and by 4.04% in 2024, whereas total business loans decreased by 2.7% in 2023 and by 1.03% in 2024. The proportion of short-term SME lending increased by 13.3% in 2023 and by 2.5% in 2024. During this period, banks became more risk-averse, resulting in more restrictive credit conditions for SMEs. The proportion of government-guaranteed loans within the total SME loan portfolio increased steadily until 2021, reflecting sustained public efforts to improve SME access to finance. However, from 2022 until 2024, the proportion of government-guaranteed loans declined significantly. During this period, the total value of government-guaranteed loans fell by 49%.
Between 2021 and 2024, banks increasingly tightened lending conditions for companies, especially SMEs. This trend was largely influenced by economic uncertainties, inflationary pressures, and regulatory adjustments or changes. The proportion of collateral bank lending increased by 0.52% between 2023 and 2024. There has been a steady increase of 6.05% from 2021 to 20241 . Consequently, the average interest rate for SME loans increased from 2.92% in 2022 to 5.49% in 2023, an increase of 2.57 percentage points. In 2024, it declined slightly to 5.14%, down by 0.35 percentage points compared to 2023, equivalent to a relative decrease of around 6.4%. Over the same period, the interest rate spread narrowed, falling from 0.78 percentage points in 2022 to 0.60 percentage points in 2023 and further to 0.20 percentage points in 2024. Overall, the spread declined by 0.58 percentage points between 2022 and 2024, corresponding to a reduction of around 74.4%.
Venture and growth capital has fluctuated over the past decade. However, over the past four years, there has been an increase, peaking at EUR 103 million in 2024, a rise of 5.8%. A more detailed analysis by business stage shows that early-stage businesses were by far the largest recipients in both years, with EUR 45.8 million transacted in 2023 and EUR 56.3 million invested in 2024.
Source : Invest Europe
Late payments can compromise cash flow and reduce liquidity, preventing companies from investing, paying salaries and meeting their financial obligations. This puts additional pressure on companies, particularly SMEs, which are already under strain due to geopolitical instability and global supply chain disruptions. These companies are now relied upon to drive innovation and create jobs. One of the main causes of cash flow issues for SMEs is late payment. SMEs have narrower margins and less financial resilience. On average, payment delays have decreased from 33 days in 2014 to 17 days in 2024. While there has been a sustained decline over the last ten years, there has also been a slight increase from 2021 (12 days of delay) to 2024 (17 days of delay). According to “Intrum's Portugal Payment Report 2025”, prepayment remains the most widely adopted preventive measure (47%), though this marks a slight decrease from 51% in 2023. Meanwhile, the use of credit control and insurance has remained stable at 30%, while the use of bank guarantees has increased significantly, rising from 19% in 2023 to 29%. There has also been an increase in fraud prevention, rising from 19% in 2023 to 24% in 2024.
Three years on from Russia’s large scale aggression in Ukraine, the European Union is still committed to ensuring security, resilience and economic stability. The ongoing aggression has highlighted the urgent need to strengthen the resilience of SMEs against hybrid threats, including cyberattacks. The effects of the aggression in Ukraine on global supply chains are particularly evident in the Portuguese economy. These include constraints directly associated with shortages of materials and essential production components, including energy goods.
Another challenge that arose from this war was the need for the European Commission and the Member States to provide increased financial support to the defence sector. The Portuguese government has recently pledged to allocate 5% of its GDP to defence spending over the next ten years (until 2035). The European Commission has launched calls for proposals on this subject. Applications for the European Defence Fund under the EDF Work Programme 2025 are open until 16 October 2025, including 13 calls associated with STEP (Strategic Technologies Platform for Europe), with a total allocation of EUR 355 million. The aim of these calls is to support research and development projects focused on the development of critical defence technologies and capabilities in all military domains (including land, air, naval, space, and digital), particularly in the following areas: i) Digital ship and naval combat cloud; ii) Multifunctional Information Distribution System; iii) Multiband 4D Radar; iv) Improved cyber defence operations capabilities; v) Naval hybrid propulsion and power systems; and vi) Technologies for optronic detectors.
Portugal is also stepping up financial support for ongoing projects funded by the Recovery and Resilience Plan (RRP), which has an overall budget of EUR 22.2 billion of European funding. This includes the Mobilizing and Green Agendas, with a EUR 6.5 billion of contracted investment. Dedicated calls are also planned in the field of defence under Portugal 2030 (PT2030). PT2030 is a financial support programme established in 2021 under the Partnership Agreement between Portugal and the European Commission, with an overall budget of EUR 23 billion of European funding. It should be noted that the RRP supports private and public companies, research and development (R&D) entities, universities, municipalities, among others, to achieve sustainable growth and overcoming the dual challenges of the green and digital transitions. These projects aim to foster the development of new, high-value products, processes, and services by leveraging knowledge and technology. They seek to accelerate the structural transformation of the Portuguese economy, enhance its specialisation profile and strengthen national value chains, thereby advancing the green transition and promoting environmental sustainability. PT2030 is a strategic tool designed to support companies, R&D entities, local authorities, public bodies, individuals, etc.
Between 2021 and 2027, PT2030 will finance projects that stimulate economic growth and development, employment, qualifications, inclusion, and demography towards the European Union's five strategic objectives of creating a smarter, greener, better-connected, and more socially inclusive Europe that is closer to its citizens.
The external pressures above referred have led to interest rate rises that are unprecedented at an international level in recent decades. This poses enormous challenges for Portuguese companies, requiring them to strengthen their ability to respond to adverse situations and increase their resilience. These challenges are further exacerbated by the ever-growing pressures of cybersecurity, digitalisation, climate change and sustainability.
As part of the InvestEU programme, an initiative designed to mobilise investment, support economic recovery, and shape the future economy, the Portuguese Development Bank (Banco Português de Fomento) has developed and implemented several guaranteed lines. These include the Guarantee Line for SMEs and Small Mid-Caps (EUR 2.56 billion); the Guarantee Line for Sustainable Urban Mobility (EUR 284 million); and the Guarantee Line for Research, Innovation and Digitalisation (EUR 711 million).
The European Investment Fund (EIF) has launched several programmes to support Portuguese SMEs:
i. Portugal Tech I (2018–2024) - a EUR 100 million venture capital initiative co-funded by the Portuguese government and the EIF, focusing on early-stage technology-based companies and technology transfer. The initiative aims to mobilise substantial private investment in the Portuguese startup ecosystem;
ii. Portugal Tech II (2022–2026) - a follow-up programme totalling a further EUR 100 million, with the objective of mobilising around EUR 250 million in private investment. It continues to focus on innovative, technology-driven start-ups;
iii. Portugal Growth (2020–2025) - a EUR 100 million private equity programme aimed at supporting the growth and internationalisation of established Portuguese companies. It seeks to attract up to EUR 300 million in total investment;
iv. Portugal Blue (2020–2026) - a EUR 50 million venture capital initiative to foster the blue economy by investing in companies at all stages of development, including the early stages and the growth phase, that operate in sectors such as ocean technology, sustainable fisheries and marine biotechnology.
Economy Acceleration ProgrammeIn July 2024, the Portuguese government launched the “Programa Acelerar Economia” to boost the country's economic growth. The programme aims to strengthen the resilience of SMEs, stimulate innovation and competitiveness, and foster job creation. The programme focuses on four main areas: scaling up, consolidation, capitalisation and financing; innovation, entrepreneurship and talent; sustainability; and sectoral densification, reindustrialisation and integration and encompasses 60 measures. Key aspects include reducing the corporate tax rate from 21% to 15% by 2027, with an interim reduction to 19% in 2025. Tax incentives are also in place, including enhanced deductions for investments in research and development (R&D), capital gains and dividends, to encourage business capitalisation and innovation. One of the measures is the “Innovative Suppliers Network”, which aims to promote the creation of innovation consortia led by appropriately sized companies and involving SMEs and R&D centres. These consortia will develop and supply innovative medium/high-technology goods and services to industrial production centres.
It is also worth highlighting the Early Warning Mechanism (MAP), launched by IAPMEI (the Portuguese Agency for Competitiveness and Innovation). This tool helps SMEs to understand how their economic and financial performance compares to that of other companies in their sector and of a similar size. It evaluates SMEs' financial and economic performance over the last three financial years using qualitative and trend analyses. It identifies their main challenges and suggests ways to improve their overall performance. The tool aims to foster financial literacy among companies and entrepreneurs, enabling them to make better-informed decisions and manage more efficiently, thereby preventing company failure. In 2023, 202 982 of the assessed companies were micro, 43 683 were SMEs and 786 were small mid-caps.
Another key national initiative is the 'SME Leader' programme, which is run by IAPMEI and Turismo de Portugal in partnership with several Portuguese banks and mutual guarantee societies. The programme uses a transparent and objective scoring mechanism to identify and distinguish national SMEs with stronger risk profiles. The programme aims to promote excellence throughout the entire SME financing ecosystem. SME Leader status, awarded by IAPMEI, recognises the high performance of Portuguese SMEs and is a seal of reputation. Portuguese SMEs. Partner banks and mutual guarantee societies also contribute to the selection process, which is based on economic and financial indicators, as well as strong credit ratings. Companies awarded SME Leader status gain access to a range of exclusive benefits, including preferential conditions for financial products, access to specialised support services, improved relationships with financial institutions and enhanced credibility when dealing with customers, suppliers and other stakeholders. In 2023, 11 368 companies were awarded SME Leader status. This figure increased to 13 394 in 2024, marking a rise of 17.82%. These companies had a turnover of over EUR 61 billion, exported goods worth over EUR 10 billion and created over 429 000 jobs. Small companies predominated, accounting for 71.9% of all SME Leaders in 2024, followed by medium-sized companies (22.3%) and micro companies (5.8%).
According to the “SME Performance Review 2025”, the performance of European SMEs is essential for maintaining the stability and dynamism of the EU economy. The number of SMEs is projected to grow by an average of 1.2% annually, demonstrating continued confidence in entrepreneurial activity across Europe. However, there are ongoing risks, such as the implications of new trade tensions, including recent tariff announcements from the US. Consequently, it is crucial to invest in digital security through EU-funded programmes to protect the foundation of Europe’s economy.
Note: Interest rates on new loans up to EUR 1 million (prior to 2010) and loans up to EUR 0.25 million (in 2010) are used as proxy for SME loans. Data on interest rates cover only loans granted by banks.
Source: See Table 4
References
“Economic Bulletin – March 2025”, Banco de Portugal, https://www.bportugal.pt/en/publicacao/economic-bulletin-march-2025
“Financial Stability Report, November 2024”, Banco de Portugal, https://www.bportugal.pt/en/page/november-2024-financial-stability-report
“Bank Lending Survey, January 2025”, Banco de Portugal,”https://www.bportugal.pt/en/publicacao/bank-lending-survey-january-2025
“Report activities and financial statements 2025”, Banco de Portugal, https://www.bportugal.pt/en/comunicado/press-release-banco-de-portugal-annual-report-activities-and-financial-statements-2024
“Enterprises of Portugal 2023”, Statistics Portugal, I.P. (INE), https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=695018042&DESTAQUESmodo=2&xlang=en
“European Payment Report Portugal 2025”, Intrum Portugal, https://www.intrum.com/insights/publications/epr-2025/
“Insolvency Report Portugal”, March 2025, Allianz Trade, https://www.allianz-trade.com/en_global/news-insights/news/insolvency-report-2025.html
“Fundraising and Investment in Portugal 2024”, INVEST Europe, https://www.investeurope.eu/research/activity-data/
“2024 SME Portugal Fact Sheet”, published by the European Commission, based on national and Eurostat databases, https://ec.europa.eu/docsroom/documents/60578
European Investment Bank: https://www.eib.org/en/press/all/2025-122-portugal-financing-from-eib-group-surpasses-eur2-billion-in-2024-with-record-investment-in-green-financing-and-sustainable-energy)
Banco Português de Fomento (Portuguese Development Bank): https://www.bpfomento.pt/pt/catalogo/produtos-de-garantia/
This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Member countries of the OECD.
This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
Note by the Republic of Türkiye
The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiye shall preserve its position concerning the “Cyprus issue”.
Note by all the European Union Member States of the OECD and the European Union
The Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.
© OECD 2026
Attribution 4.0 International (CC BY 4.0)
This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence (https://creativecommons.org/licenses/by/4.0/).
Attribution – you must cite the work.
Translations – you must cite the original work, identify changes to the original and add the following text: In the event of any discrepancy between the original work and the translation, only the text of original work should be considered valid.
Adaptations – you must cite the original work and add the following text: This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed in this adaptation should not be reported as representing the official views of the OECD or of its Member countries.
Third-party material – the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and for any claims of infringement.
You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.
Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shall be Paris (France). The number of arbitrators shall be one.
← 1. The percentage change is calculated based on the total value of collateral bank lending. In 2021, the value of collateral bank lending to SMEs was EUR 72.78 million, whereas in 2024, the value increased to EUR 77.18 million.