SME outlook in Europe: growth, challenges, and financing trends

Summary

The recent Asset Finance Connect webcast, held in partnership with Acquis, brought together experts from France, Germany, and Spain to discuss the evolving landscape for small and medium-sized enterprises (SMEs) across Europe. Moderated by John Rees, Head of the Equipment Finance Community, the session presented findings from Acquis’ comprehensive survey of over 350 European SMEs and featured insights from Sophie Féret (Black Winch, France), Aurelio Merino (BPCE Equipment Solutions, Spain), and Ralf Steger (Heidelberger Druckmaschinen AG, Germany).

The Acquis survey, conducted over the past two to three months, captured the perspectives of intermediate to senior managers directly involved in investment decisions within SMEs employing between 10 and 249 people. The data revealed key insights into business sentiment, investment intentions, financing preferences, and the challenges SMEs expect to face in 2025.

Introduction from Nick Leader, CEO of Acquis

This webcast brought to you by Asset Finance Connect in association with Acquis, explored the latest insights from our recent ‘temperature check’ survey of the SME equipment finance landscape in Spain, France, and Germany.

We were delighted to be joined by industry experts John Rees, Aurelio Merino, Sophie Féret, and Ralf Steger, whose perspectives helped bring valuable context and depth to the discussion.

Acquis is proud to be the only global insurance specialist dedicated exclusively to the equipment finance market. We partner with leading leasing brands across Europe and beyond, delivering insurance solutions that protect assets, drive revenue, and enhance customer value.

To better serve our partners, we continuously invest in understanding the evolving challenges and opportunities within asset finance. As part of this commitment, we recently conducted a ‘temperature check’ survey across the Spanish, French, and German SME markets. The survey gathered insights from 350 senior decision-makers in SMEs (10–249 employees) in each country, focusing on business sentiment amongst SMEs, investment intentions in equipment, and funding sources.

Today’s panel explored some of the key findings from the Acquis survey. After the webcast, attendees will receive a copy of the full research report. Additional copies can be requested by emailing us at marketing@acquisinsurance.com

A cautious optimism defines the market sentiment

Despite political and economic instability, SMEs across all three countries showed surprising levels of optimism. In France, 55% of respondents expressed optimism, a notable result given the country’s turbulent political environment and regulatory uncertainty. Sophie Féret remarked that this figure was encouraging, especially for a market that tends to be inherently cautious. However, concerns over fragmented government and unclear tax policy are weighing heavily on decision-makers.

German SMEs reported similar optimism at 58%, although Ralf Steger noted this was slightly out of step with the traditionally prudent German business culture. His own conversations with SME clients suggest cautious enthusiasm, particularly as firms focus on local markets and avoid broader international volatility.

Spain stood out as the most optimistic, with 73% of SMEs positive about future prospects. Aurelio Merino attributed this to consistent GDP growth and a slow but steady post-COVID recovery. Despite political instability and regulatory burdens, Spanish SMEs remain upbeat, showing resilience and a determination to expand.

Growth through technology, efficiency, and innovation

When asked where they see growth opportunities, SMEs across the three countries expressed a strong appetite for innovation and technology. In France, the top priority was cost and pricing optimisation (52%), reflecting a cautious but smart approach to growth. French SMEs are not aggressively expanding but are focused on margin protection and operational efficiency. Sophie highlighted how this mindset creates space for flexible leasing solutions that help maintain liquidity.

German SMEs showed a clear preference for investing in technology (49%), consistent with the country’s engineering-driven culture. This was closely followed by digitalisation and employee wellbeing. According to Ralf, technology investment is seen as a route to operational efficiency and long-term competitiveness. Supply chain optimisation, surprisingly, ranked lower, indicating a domestic rather than global business focus.

In Spain, investment priorities mirrored Germany’s, with 47% pointing to technology and 44% to digitalisation. Aurelio noted that the surge in digital transformation during 2020 has left many businesses needing to update outdated systems. EU subsidies have helped create a tech-friendly investment mindset, and there is renewed momentum to upgrade systems and improve competitiveness.

Regulatory complexity and talent shortages remain key obstacles

While optimism persists, the challenges SMEs face are significant and often region-specific. In France, the political environment (53%) and over-regulation (50%) topped the list of concerns. Sophie explained that French businesses often deal with more regulation than required under EU law, making it difficult for SMEs to plan effectively. Intense market competition adds to the pressure, with many SMEs calling for flexible finance options to help them stay agile.

German SMEs identified talent sourcing and retention (54%) as the top concern, an unexpected result given the size of the companies surveyed. Ralf suggested this points to structural workforce issues affecting SMEs just as much as large corporations. Political complexity and bureaucratic inefficiencies were also flagged, with regulation seen as a barrier to success rather than a framework for stability.

In Spain, regulation (57%), talent shortages (55%), and political instability (54%) were the top three challenges. SMEs also expressed concern about the financial health of their customers, with 53% citing customer creditworthiness as a key issue. Aurelio emphasized that while optimism remains high, these figures indicate a realistic understanding of the risks ahead.

Investment plans stay strong despite headwinds

Encouragingly, SMEs across all three countries reported a strong intention to invest in new equipment. In France, 83% said they were likely to invest, driven by a desire to futureproof operations. Sophie described French SMEs as resilient and strategic, looking beyond short-term uncertainty toward long-term survival.

Germany reported a slightly lower figure at 77%, reflecting fewer available government subsidies. Still, Ralf noted that SMEs understand the need to invest in technology if they want to remain competitive.

Spain led again with 86% planning to invest. Aurelio attributed this to the persistence and ambition of Spanish SMEs, who continue to drive forward despite political and economic hurdles.

Leasing leads, but financial education still needed

Leasing emerged as the preferred financing method across all three markets. In France, 43% of SMEs said they would use leasing, driven by a desire to protect cash flow and avoid asset ownership in a rapidly changing environment. However, the continued use of cash (30%) and credit cards (26%) surprised Sophie, who sees a clear need for better financial education.

Germany showed similar results, with leasing at 46%. The high use of credit cards and cash (27% and 37% respectively) also suggests that some SMEs still opt for the quickest and easiest financial options, even if less efficient.

Spain’s SMEs were split between leasing (39%) and using available cash (39%). Aurelio noted a worrying trend: 60% of SMEs had either never used or never heard of leasing, underscoring the need for more industry outreach and education to help SMEs access smarter financing.

Green finance: strong in principle, wavering in practice

Finally, the survey revealed that while ESG and green financing remain important, the momentum has slowed. In France, 58% rated green finance as highly important, and Sophie pointed to innovations like reusable or upgradable equipment contracts as examples of sustainable business strategies.

In Germany, 61% felt green finance was important, though Ralf suggested its prominence might be slightly overshadowed by more immediate economic challenges. Spain recorded the highest importance at 63%, though Aurelio cautioned that this may not reflect actual investment behaviour. There’s a growing risk of greenwashing, where companies present a greener image than their actions support.

Concluding remarks

The AFC webcast with Acquis provided a timely and in-depth look at the state of European SMEs as they prepare for the year ahead. While SMEs in France, Germany, and Spain remain optimistic, they are operating in environments marked by regulatory complexity, political instability, and tight talent markets. The desire to invest is strong, particularly in technology and digitalisation, but the way SMEs choose to finance that investment is evolving.

Leasing is becoming a central tool in SME strategy, but industry players must do more to educate the market. At the same time, green financing remains on the agenda, though its practical impact may be waning.

For the equipment finance industry, this presents both a challenge and an opportunity: to support Europe’s SMEs not just with funding, but with guidance, flexibility, and smarter financial solutions tailored to their needs in a complex and rapidly changing landscape.

Watch the webcast in full here.