Debrecen4U November 17, 2025

How the launch of major factories could impact Debrecen’s small and medium‑sized enterprises

According to Károly Balogh, the county president of the National Association of Entrepreneurs and Employers (VOSZ), the development of Debrecen is stimulating the economy of the entire county, but the appearance of multinationals poses a serious challenge to smaller companies.

On Saturday, the county branch of the National Association of Entrepreneurs and Employers presented the Entrepreneur of the Year awards at a gala. These titles were awarded in the categories of industry, agriculture, trade, innovation and hospitality, as well as the Responsible Multinational Company of the Year. 

Among other topics, Károly Balogh, the county president of the VOSZ, spoke about this, the situation of SMEs and the multimentor program in the program titled HírPONT of the Médiacentrum Debrecen.

“We primarily awarded those enterprises that, based on the numbers, have undergone some kind of development, have a good profit rate, or can produce exportable products. In the industry, agriculture, and innovation categories, companies from outside Debrecen won, which also proves that the development in Debrecen can have an impact on the entire county region,” pointed out Károly Balogh.

An important announcement was also made at the weekend gala: the VOSZ MultiMentor SME Supplier Program is being launched. With a qualification system developed in cooperation with PWC Hungary, potential suppliers are selected for international companies after sectoral and financial pre-screening.

“There are already several supplier programs in Hungary, and in Debrecen, perhaps one of the best in the country, EDC has started an excellent program. The essence of this is to bring suppliers and family companies together, thereby creating a business environment from which, as far as I know, many businesses have already been created. The multi-mentor program did not start in Debrecen; it is a national initiative of VOSZ. This cooperation is new, as we focus not only on bringing the parties together but also on training both family businesses and multinational companies over a period of six to twelve months. This is a back-and-forth mentoring,” he explained.

BMW Group Plant Debrecen also started production a few weeks ago. Answering a question from Zsuzsa Keserű, editor-in-chief of Médiacentrum Debrecen, Károly Balogh said that while they truly see this as a success story, wages and the labor market situation have fundamentally changed.

“Debrecen has become the most developed non-Budapest region of the country. In fact, the labor force coverage in the city is complete; there is no unemployment; everyone can find a job,” he emphasized, adding, however, this is not paradise for employers, as those targeting narrower segments must create competitive conditions to succeed in this labor market.

“This can create a disadvantageous situation for local SMEs, as multinationals can promise wages from a strong budget,” he revealed. The question of the week on Dehir’s Facebook page, “How might the launch of the large factories in Debrecen (BMW, CATL) affect SMEs?” also related to this.

Deputy Mayor Lajos Barcsa also commented on the post, writing that in Debrecen, they are working to ensure that local small and medium-sized enterprises also benefit from the city’s economic development, as they ensure the livelihood of many Debrecen families.

According to Károly Balogh, it is important that the two gigantic Debrecen companies (CATL and BMW) get started, as these are also large companies in an international sense.

“The initial information is that the Neue Klasse iX3 model is being received extremely well, which can obviously have an impact on capacity and labor demand. This could further drive up wages; alternatively, migration to Debrecen must be supported to maintain balance, otherwise a situation may arise where local businesses truly face difficult everyday challenges,” he emphasized.

He added, “Let’s imagine an economic environment where wages increase, competitive companies can be established, and if wages increase, consumption can also increase, and if consumption increases, more restaurants, theaters, and so on are needed.”

He believes it is important to look ahead, since in this new economic system many well‑paid managers and employees will emerge, who can help grow the revenues of local entrepreneurs.

Source and photo credit: dehir.hu