This study investigates how political stability (PS), economic policy uncertainty (EPU), and directors’ political-action values (PAV) jointly influence the likelihood that European small- and medium-sized enterprises (SMEs) become high-growth firms (HGFs). Using logistic regression models that track firms from 28 European countries over more than a decade (2012-2022), we find that a stable political environment significantly increases the odds of rapid employment expansion, whereas heightened policy uncertainty reduces them. Managerial orientation plays a pivotal role. Directors and managers who exhibit strong norms of conventional political engagement are more effective in converting stability into higher growth and in mitigating much of the drag created by uncertainty. These interaction effects suggest that politically active leadership teams serve as strategic complements to favorable institutional conditions and as partial buffers when policy signals become volatile. The findings contribute to the academic literature on institutional determinants of firm performance by highlighting the combined importance of country-level governance and firm-level political capital. The results highlight the importance of politically engaged leadership for managers and entrepreneurs, and the value of stability and clarity for policymakers seeking to foster high-growth SMEs.