Evaluation of ERDF funding for SMEs

Regional policy is one of the most important investment policies of the European Union (EU). It aims to create jobs in all regions and cities of the EU, strengthen the competitiveness of companies, promote economic growth, support sustainable development and improve the quality of life. The European Regional Development Fund (ERDF) is one of the EU's five European Structural and Investment Funds. It finances economic catch-up processes in poorer regions and those with structural problems.

The European Commission is legally obliged to evaluate the effectiveness and efficiency of the European Structural and Investment Funds and their contribution to the Union's strategy for smart, sustainable and inclusive growth. The Commission commissioned CSIL and Prognos to evaluate ERDF support for small and medium-sized enterprises (SMEs) in the period from 2014 to 2020.

SMEs are the key players in the European economy

Small and medium-sized enterprises create two out of three jobs in the private sector and contribute more than half of the economy's total value added. They cover a broad spectrum of companies that vary greatly in size, capacity, sector and type of activity.

Between 2014 and 2020, the EU provided almost 47.4 billion euros to strengthen the competitiveness of SMEs. Companies received the majority of the funds in the form of grants, while a growing proportion was channelled through financial instruments such as loans, guarantees, equity and other risk-bearing mechanisms.

The promotion of SME competitiveness focuses in particular on funding for 

• Innovation, incubation and entrepreneurship and advanced support services,
• the environmental compatibility and energy efficiency of SMEs,
• for education and
• the areas of business infrastructure, clustering, networking, digitalisation, culture, tourism and social entrepreneurship.

Our approach

Together with the Italian economic research company CSIL and country experts in 27 EU Member States, Prognos analysed 214 operational programmes for the ERDF 2014-2020 with regard to their contribution to promoting the competitiveness of SMEs.

Annual implementation reports, evaluations at national level, statistics, specialised literature and guided interviews with ERDF managing authorities and beneficiaries were used to gather and analyse information. 

In selected case studies, for example on the promotion of industrial areas or tourism, we analysed in more detail which interventions are most effective where and which factors contribute to this.

In November 2023, we presented and discussed the interim results of the study in a seminar with the Commission, managing authorities and experts.

Overall, the evaluation provides an overview of the different ways in which EU funds are used for SMEs in the EU in order to avoid potential failures in future funding periods.

Links and downloads

Further information on the evaluations of the 2014-2020 programme period (website EU-Commission)

Project team: Anja Breuer, Vera Fuhs, Marie-Kristin Komendzinski, Dr. Jan-Philipp Kramer, Tommaso Luisari, Markus Zock

Last update: 16.04.2025