The booming expansion of young, fast-growing firms and sustained growth achievers is providing European business with foundations for future success, a new report has said.
In a study released in July, but largely overlooked, the European Scaleup Institute’s monitor, which tracks growth dynamics in member states, found a slight decrease in 2024 since peak levels in 2023, despite an underlying growth trend.
A lot of this growth is being supported by younger businesses, even as the economy has slowed down. And while the research pointed at a plateau in growth in 2024, all metrics show recovery from lows during the COVID-19 years of 2020–2021.
Despite consistent difficulty faced by smaller startups in growing over the years, from scaling up to keeping up high growth over time, growth was especially notable in information and communication sectors, with administrative and support services close behind.
The financial barrier preventing young, innovative firms from expanding past early stages are especially felt in the EU, where scale-ups raise only half the capital of Silicon Valley peers.
