Credit: MECO
On Tuesday 12 July 2022, Luxembourg's Minister for Small and Medium-Sized Enterprises, Lex Delles, presented the 2021 report of the General Directorate for the small and medium-sized enterprises (SMEs).
In the context of a desire for transparency and optimisation, various statistics concerning business permits and state aid are published annually.
Like the year 2020, deeply marked by the economic consequences of the COVID-19 pandemic, the small and medium-sized business sector also experienced repercussions in 2021 on its economic development. In this context, the General Directorate for the SMEs has supported businesses and the self-employed through various support measures, in particular several direct non-payable aids as well as a repayable advance. The Directorate paid around €271 million in aid in this context and processed 29,381 files in 2021. Despite this impact, the processing time for business permit applications has been reduced. The 2021 report thus indicates that the processing time is equivalent to an average of 8.6 days (compared to 9.8 days in 2020). This positive trend is confirmed in the first half of 2022 with a processing time of 7.5 days.
It also turns out that applications for business permits jumped to a record number in 2021, which underlines the attractiveness of the Luxembourg market. Indeed, a total of 12,580 authorisation requests could thus be observed in 2021 (compared to 11,245 in 2020). 64.2% of requests concern the trade sector (63.4% in 2020), 31.2% the craft sector (32.2% in 2020) and 4.6% in exercising a liberal profession (4.4% in 2020).
This positive dynamic is also evident in the area of prior declaration certificates. The activities of cross-border craft businesses which are not established in Luxembourg, but which provide services there, are subject to a prior declaration giving rise to such a certificate. 4,897 certificates were issued in 2021 compared to 4,663 in 2020.
With regard to "classic" investment aid, as provided for in the law on the aid scheme for SMEs, it must be noted that the number of applications and the amounts granted have remained at a high level (1,204 requests in 2021 compared to 1,273 in 2020; €21,846,431 in 2021 compared to €22,048,446 in 2020).
Minister Delles underlined: "The General Directorate for the small and medium-sized enterprises has not limited itself to supporting the sector in the short term in the context of the COVID-19 pandemic, but has also succeeded in accomplishing its traditional tasks, such as processing business permit applications or assisting businesses in financing their investment projects, while improving the efficiency and speed of its work. The processing time for business permit applications has thus been reduced in 2021. The Directorate General for the small and medium-sized enterprises will continue to ensure that a framework conducive to the creation and development of SMEs is maintained”.
