UN MSME Day: How Your Europe is supporting small businesses, one click at a time

27 June is UN Micro-, Small and Medium-sized Enterprises Day, a moment to recognise the small businesses and entrepreneurs who make up over 99% of EU companies. 

Behind every small business is someone taking a risk: leaving a job, navigating bureaucracy, investing time and money in an idea. And in the EU, starting a business can feel especially daunting, not just because of national procedures, but also because the rules shift when you plan to sell across borders. 

But here’s the good news: you don’t have to figure it all out on your own. The Your Europe business portal is one of the most practical tools available for people looking to start and grow a business in the EU. It helps you understand where to start, what to expect, and how to find the right local contacts and EU-level support. 

So, in honour of #MSMEDay, here’s what starting a business in the EU actually looks like, and where this portal can help along the way. 

It starts with an idea. Then it gets real. 

You’ve got a business idea. Maybe you’re building a service, launching a product, or testing a new app. The first thing you’ll need is clarity: what does it take to start a business in your country? Are there residency requirements? How do you register a company? What kind of support exists at the local or EU level? 

The starting a business section on Your Europe offers a clear overview of the steps involved, and where to find official guidance in each EU country. It will help you understand the steps involved and point you to the right authorities and resources to get started legally and confidently. 

It also introduces some of the EU-wide initiatives available for new businesses, from startup networks to early-stage funding programmes. 

Paperwork, permits and making it official 

Once you’ve decided to go ahead, the real work begins. You’ll likely need to register your business, apply for certain permits or licences, and make sure you're following any sector-specific regulations. 

The registration, permits & licences page gives you a pathway through this process, including links to national contact points who can provide country-specific advice and support. This part of the portal is especially useful if you’re unsure whether your type of activity needs approval, or if you’re planning to operate across more than one EU country. 

Selling in the EU means understanding VAT 

It may not be glamorous but getting your VAT registration right is essential if you're selling goods or services, especially across EU borders. 

The VAT section breaks down how VAT works in the EU, when you need to register, and how to deal with invoicing, digital services, and cross-border transactions. For many small businesses, this is where complications creep in, so having accurate, multilingual guidance is a real asset. 

Your VAT obligations can change with the volume of your business. Make sure to check if your total yearly expenditure means that you can apply for a VAT exemption, it will make paperwork much easier.  

Accounting: normal, simplified, or extra-light?  

Companies of any size in the EU must draw up and keep annual statements, but as a micro-, small, or medium-sized business you might be able to make this a bit easier.  

Based on the number of staff you employ, your balance sheet, and your annual turnover, you can potentially benefit from simplified or extra-light reporting requirements.  

Use the interactive tool to see if you can cut some of the administrative work.  

Hiring people and knowing your obligations 

As your business grows, you may want to hire staff, part-time, full-time, or freelance. Employing people in the EU comes with legal obligations around contracts, working time, salaries, health and safety, and social security contributions. 

Your Europe helps you understand your core responsibilities as an employer, especially when hiring across borders. 

And finally, finding support, financial and beyond 

Finance is one of the top challenges for small businesses. Fortunately, there’s a wide ecosystem of EU-level and national support programmes that can help. 

The starting a business page and EU support tools for SMEs section connect you with: 

• EU-backed loan guarantees 

• Microfinance opportunities 

• Innovation funding 

• Tools to help SMEs go digital, go green, or enter new markets 

And if you’re just starting out, one of the most innovative offers is Erasmus for Young Entrepreneurs, a cross-border exchange programme that pairs new entrepreneurs with experienced business owners in another EU country. It’s a great way to build experience, confidence, and international networks. 

MSME Day is about recognising what small businesses make possible, but it’s also about giving them the tools to succeed. 

If you're in the early stages of launching a business, the Your Europe Business Portal is well worth a visit. It’s one of the most practical EU resources out there, especially for entrepreneurs who want to grow across borders. Didn’t find what you were looking for? Your Europe also connects you with the relevant national resources to make sure you’re as informed as possible.