EPU, despite obstacles, as Austria’s backbone for economic progress

With 357,000 one-person companies (EPU), the number of what is already the most common form of company in Austria continues to rise and, according to a report by KMU Research Austria on behalf of the Austrian Economic Chamber (WKÖ), accounts for 60 percent of all companies. This development shows that EPUs not only play a significant economic role in Austria, but also represent an increasingly important livelihood for many people. For Michael Fedorcio, general secretary at vidaflex – the trade union initiative for EPU – this shows: “One-person companies form the backbone for Austria as a business location. The high number of new start-ups demonstrates the attractiveness of Austria for companies thanks to good infrastructure and our welfare state and completely contrary to the swansong of various social partners.”

However, many EPUs face major challenges, particularly when it comes to social security, bureaucratic hurdles and financial stability. For example, 45 percent of the EPU told KMU Forschungs Austria that they had recorded a decline in sales last year compared to 2022, adjusted for inflation. And the state is also putting obstacles in the way of EPU: According to a study by the Chamber of Labor, in Austria it is still the case that large companies contribute significantly less to the welfare state than smaller ones. vidaflex therefore demands that the measures recommended by the Chamber of Labor against tax evasion by large companies be finally implemented.

The fact that the number of EPUs is continuously increasing despite these difficulties is also due to the fact that more and more people are leaving traditional employment relationships due to digitalization or consciously want to pursue an alternative career path. Many EPUs are active in the areas of crafts, consulting, care, but also in emerging fields such as social media. Michael Fedorcio, Secretary General at vidaflex, states: “One-person companies are particularly active in less resource-intensive sectors, which will be even more important for a sustainable business location in the future. That’s precisely why we need more fairness towards this sector, which is so important to us!”

vidaflex offers support for the most common problems faced by self-employed people, especially for EPU and small businesses. As Europe’s first trade union initiative for EPU and small businesses, vidaflex focuses on offering members a cost-effective all-round package. This includes support in the areas of social security through legal protection insurance, bureaucratic relief through a separate account package and political countervailing power. vidaflex aims to address the challenges of EPUs and give them the necessary tools and support to succeed in a competitive environment.