The second edition of the EY Entrepreneurial Barometer surveyed more than 1,000 business owners across 16 Central, Eastern and Southern European countries; 173 respondents were from Hungary. Responses were collected in February–March 2026. The study finds that companies across the region are pursuing breakout opportunities despite an uncertain international economic environment, but place strong emphasis on predictable operations and stability.
Investment priorities and where money would go
Respondents identified digitalisation, artificial intelligence (AI) and workforce development as areas that could meaningfully improve competitiveness. In Hungary, however, caution is more pronounced: domestic companies tend to prioritise investments that directly increase operational efficiency and modernise processes.
Compared with regional peers, Hungarian firms plan fewer investments in new facilities, online sales solutions and IT developments. By contrast, machinery and equipment investments feature more prominently among Hungarian plans. Longer-term, higher-risk projects are still characterised in Hungary by a wait-and-see approach.
Financing: internal funds dominate, external capital lags behind
Hungarian companies continue to finance growth mainly from their own resources; the survey indicates they rely substantially less on bank or other external financing than their regional counterparts. While this can preserve owner control, it may impede faster expansion and make large up-front investments—such as digital transformation, automation or capacity increases—harder to undertake.
Horváth Csaba, partner at EY-Parthenon, noted that non-bank external capital can play an important role in accelerating digitalisation and innovation, and although companies’ efficiency has improved, significant room for progress relative to regional competitors remains.
Labour market challenges and hiring plans
Most Hungarian business owners intend to retain existing staff, but hiring appetite has declined: only a quarter of Hungarian respondents plan to recruit new employees, compared to nearly half of respondents across the region. The biggest domestic problem remains finding candidates with appropriate training and relevant professional experience. While pressure on labour costs has eased somewhat versus the previous year, attracting and retaining skilled talent remains a major challenge.
Artificial intelligence: productivity gains, but business integration is early-stage
Use of AI and machine learning solutions in Hungary increased noticeably over the past year, primarily for data analytics, administrative support and marketing. Companies expect AI and digital technologies to improve productivity and support decision-making, which points more to internal performance improvements than to broad transformation.
However, the intensity of AI investments lags the regional average and true business integration is generally at an early stage. Vékási Tamás, CEO of EY Hungary, emphasised that AI alone does not create a competitive edge: the difference is made when companies can attach technology to concrete business goals, achieve measurable results and scale successful solutions across their operations.
Why this matters
The survey suggests that while Hungary’s cautious stance and reliance on internal funding provide short-term stability, they may create competitive disadvantages relative to regional peers over time. Targeted investments in digitalisation, AI and workforce development, along with more deliberate use of external financing, could materially affect Hungarian companies’ growth prospects and competitiveness.
According to Vékási Tamás, EY’s aim with the barometer is to highlight development areas and support entrepreneurs in implementing improvements that will help both company performance and the competitiveness of the Hungarian economy.
