According to figures from the Bank of Portugal, the number of non-financial companies increased by 3.3% to 558,722, while their combined turnover rose by 4.5% to €577.46 billion.

Employment also increased, with almost 3.78 million people working in these businesses, up 2.2% on the previous year.

Construction was a particular bright spot. Turnover in the sector grew by 11.5%, compared with 9.4% in 2024. Construction companies now account for 11% of all Portuguese businesses and employ nearly 11% of the workforce.

Small businesses continue to make up the overwhelming majority of companies in Portugal.

Almost 89% are classified as micro-enterprises, although together they employ just over a quarter of the country’s business workforce.

At the other end of the scale, large companies represent only 0.3% of businesses but generate nearly 43% of total turnover.

Commerce remains Portugal’s biggest sector by turnover, accounting for 35.8%, followed by industry at 21.9%.

There were some signs of pressure on profitability, however. Returns on company assets and shareholder equity both slipped slightly, although they remain high by historical standards.

Looking at the longer picture, the number of companies operating in Portugal has increased by more than 52% since 2006, while employment has grown by 44.5%.

For a country where smaller businesses play such an important role in the economy, the figures show continued growth, with construction helping to lead the way.

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