This focus paper explores the growing cybersecurity challenges facing Europe’s Micro and Small Enterprises (MSEs), which play a vital role in economic growth but are increasingly vulnerable due to rapid digitalisation and limited resources. While digital transformation has helped MSEs remain competitive (particularly during crises such as the COVID-19 pandemic) it has also exposed them to a broad spectrum of cyber threats, including ransomware, phishing, malware, DDoS attacks, and supply chain breaches. These threats are intensified by a lack of cybersecurity expertise, dependence on costly or ill-suited technology solutions, and constrained budgets, all of which can result in significant operational and financial consequences.

The paper underscores the urgent need for comprehensive policy measures and targeted support from EU authorities and National Coordination Centres (NCCs). It recommends expanding access to practical training, increasing funding, and developing user-friendly cybersecurity tools to foster a strong cybersecurity culture and safeguard both individual businesses and the broader digital ecosystem.

This paper focuses on the role of micro and small enterprises (MSEs) in the EU’s environmental transition. It considers the obstacles they face and possible solutions to ensure a sustainable and prosperous transition. MSEs represent a significant proportion of EU businesses, micro enterprises alone accounted for 93.6% of all European enterprises in 2023, employing nearly half of the enterprise workforce. Despite their size, MSEs are responsible for a considerable proportion of environmental impact. According to OECD data, they contribute to 40% of greenhouse gas emissions in general, and half of industrial pollution.

While a growing number of MSEs are committed to improving sustainability, only 42% are implementing at least five resource efficiency measures, such as saving energy and minimising waste. Access to finance remains a critical barrier: 55% of SMEs cite it as a substantial obstacle, and 70%
indicate a need for additional financial support to accelerate their green transition. To address these challenges, the paper recommends (1) to increase MSEs’ awareness and knowledge of support schemes and technical expertise, (2) to simplify regulatory and reporting requirements and (3) to improve financial support through targeted financial instruments and incentives.

The paper highlights the importance of a tailored support tool, such as a one-stop-shop platform, to provide MSEs with the necessary resources and facilitate their transition to a more sustainable model.

In 2024, the European Microfinance Network (EMN) expanded its membership across Europe, strengthened its partnerships with relevant stakeholders, and continued to promote financial and social inclusion. By representing the microfinance and social economy in Brussels, EMN reasserted its position as the leading voice of the sector in Europe.

This report provides an overview of the main activities carried out by the EMN team and its partners during the previous year. It outlines EMN’s key objectives, which include ensuring fairer and inclusive finance for all, supporting underserved groups, and developing sustainable solutions for the microfinance sector.

Download our Annual Report for 2024