Introduced by the Ministry of the Economy in 2019 and subsequently expanded in 2022 and 2025, the SME Packages aim to support small and medium-sized enterprises in their modernisation, digitalisation and sustainable transition through a combination of consultancy and public grants. Since their launch, 2,138 agreements have been signed. But behind this apparent success, the scheme’s actual impact remains limited. Luxembourg has just over 45,000 active businesses, according to the latest data from Statec. Within this economic landscape, nearly 99% are SMEs, the vast majority of which are organisations with fewer than 10 employees. In this context, the 2,138 SME Packages granted since 2019 represent only a fraction of the economic landscape.

The profile of the beneficiaries confirms this concentration. 91% of the companies making use of the scheme have fewer than 50 employees, compared with just 9% for medium-sized companies with between 50 and 250 employees. In other words, it is the smallest organisations that receive the bulk of the aid, whilst medium-sized SMEs lag behind.

Of all the grants awarded, 1,909 relate to digital technology, far outstripping those for artificial intelligence (57) or cybersecurity (13). The message is clear: digital transformation remains the top priority for businesses. “The most widely implemented measure is the SME Packages – Digital,” confirms the Minister for the Economy, Lex Delles (DP), in his parliamentary response published on Thursday 19 March. This dominance raises questions at a time when the need for cybersecurity and artificial intelligence is growing.

€2.2m in 2025

On the ground, the country’s economic geography is, unsurprisingly, reflected in the applications. The canton of Luxembourg alone accounts for 539 applications, followed by Esch-sur-Alzette (316) and Capellen (167). At the other end of the scale, some areas are virtually absent, such as Vianden, with just nine applications.

The most active sectors are construction (20.9%), retail (20.5%) and specialised and technical services (17.7%). By contrast, the manufacturing and finance sectors remain marginal in their use of these grants. The average grant amount remains modest, with €11,617 invested for an average grant of €7,848. A useful tool, but still far from bringing about a fundamental transformation of the economic fabric.

In terms of the budget, the increase is real but still modest. After €1.2 million was allocated in 2023 and 2024, the budget rises to €2.2 million in 2025. By mid-March 2026, €0.6 million had already been committed. In response to changing needs, the government expanded the programme in 2025, particularly in the areas of artificial intelligence and cybersecurity. However, no further expansion is currently planned. “The ministry is constantly reviewing the various packages on offer to ensure they meet the needs of businesses,” says Lex Delles.