According to the second Entrepreneurial Barometer by EY, Hungarian small and medium‑sized enterprises (SMEs) are planning for 2026 with a focus on caution, improving efficiency, financing issues, labour shortages, digitalisation and artificial intelligence (AI).
The survey was conducted between February and March 2026 across 16 Central and Southeast European countries, polling more than 1,000 entrepreneurs; the sample included 173 respondents from Hungary. A key finding is that Hungarian business owners continue to operate with a risk‑averse stance.
Factors slowing momentum
Respondents for the second consecutive year cited global economic uncertainty, a bureaucratic regulatory environment, and shortages of financial resources and skilled labour as the main constraints on growth. As a result, many firms prefer controlled, directly returnable investments instead of large, long‑term projects.
Investment priorities: efficiency first
Hungarian companies plan to spend primarily on measures that directly boost operational efficiency and modernise processes. Compared with regional peers, Hungary shows lower planned investment in new facilities, online sales solutions and IT developments, while machinery and equipment investments receive greater emphasis than the regional average.
Longer‑term, higher‑risk investments are still being postponed. The EY study also finds that Hungarian firms rely mainly on internal funds for growth and operations and are far less dependent on external financing or bank loans than regional counterparts. This can mean stronger owner control but may also limit faster expansion, especially for projects that require large upfront investments such as digitalisation, automation or capacity increases.
Labour market and talent: retention but less hiring
The labour market outlook is challenging. While most Hungarian companies intend to retain current employees, willingness to hire has declined: only about one quarter of Hungarian respondents plan to recruit new staff, whereas nearly half of respondents across the region consider workforce expansion. Finding adequately skilled candidates with relevant professional experience remains one of the biggest problems.
Although pressure from labour costs eased compared with the previous year, attracting and retaining talent continues to be a major challenge.
Digitalisation and AI: improving internal performance
EY reports a meaningful increase in the use of AI and machine learning solutions in Hungary over the past year, mainly for data analysis, support of administrative tasks and marketing activities. Companies expect primarily productivity improvements and better decision support from these technologies. For now, this trend indicates strengthening of internal performance rather than comprehensive business transformation.
Portfolio’s nationwide SME tour: practical help for autumn events
Reflecting the current situation, Portfolio is running an autumn SME roadshow that starts in Budapest and visits Szeged, Kecskemét and Győr. The programme aims to provide up‑to‑date economic and financial overviews, practical financing and grant information, and knowledge on corporate management, digitalisation and energy efficiency to decision‑makers.
Topics highlighted at the events include:
- outlook for the Hungarian economy, inflation and interest rate environment;
- available funding and loan programmes, EU grant opportunities;
- cost optimisation, energy procurement and energy efficiency investments;
- how AI and digitalisation can deliver measurable productivity gains for SMEs.
The series is aimed at entrepreneurs, CEOs, CFOs and development professionals who want not only to respond to upcoming challenges but to actively shape their companies’ futures. Registration for the events is open.
Related event: Western Hungary Economic Forum
The Western Hungary Economic Forum is scheduled for 15 October 2026 and aims to foster high‑level professional dialogue and valuable business contacts to support regional growth.
Tags: SME, loan, investment, financing, EU grant, inflation, artificial intelligence, labour market, Hungarian economy, energy procurement
