{"id":1148250,"date":"2026-08-14T14:33:36","date_gmt":"2026-08-14T14:33:36","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1148250\/"},"modified":"2026-08-14T14:33:36","modified_gmt":"2026-08-14T14:33:36","slug":"southern-europe-leads-boom-in-young-high-growth-firms-as-germany-falls-behind-euobserver","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1148250\/","title":{"rendered":"Southern Europe leads boom in young, high-growth firms, as Germany falls behind \u2013 EUobserver"},"content":{"rendered":"<p class=\"wp-block-paragraph\">The booming expansion of young, fast-growing firms and sustained growth achievers is providing European business with foundations for future success, a new <a href=\"https:\/\/driesfaems.github.io\/ESI_monitor_2026\/\" data-type=\"link\" data-id=\"https:\/\/driesfaems.github.io\/ESI_monitor_2026\/\" rel=\"nofollow noopener\" target=\"_blank\">report<\/a> has said.<\/p>\n<p class=\"wp-block-paragraph\">In a study released in July, but largely overlooked, the <a href=\"https:\/\/scaleupinstitute.eu\/\" data-type=\"link\" data-id=\"https:\/\/scaleupinstitute.eu\/\" rel=\"nofollow noopener\" target=\"_blank\">European Scaleup Institute\u2019s<\/a> monitor, which tracks growth dynamics in member states, found a slight decrease in 2024 since peak levels in 2023, despite an underlying growth trend.<\/p>\n<p class=\"wp-block-paragraph\">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\u20132021.<\/p>\n<p><a href=\"https:\/\/euobserver.com\/231376\/brussels-hands-its-e5bn-scale-up-fund-to-a-stockholm-private-equity-giant-eqt\/\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"441\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/08\/Trollhattan_30_nov_2019a-600x441.jpg\" class=\"attachment-thumbnail size-thumbnail wp-post-image\" alt=\"\"  \/><\/a><\/p>\n<p class=\"wp-block-paragraph\">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.<\/p>\n<p class=\"wp-block-paragraph\">The financial barrier preventing young, innovative firms from expanding past early stages are especially felt in the EU, where scale-ups raise only <a href=\"https:\/\/www.eib.org\/en\/publications\/online\/all\/the-scale-up-gap\" data-type=\"link\" data-id=\"https:\/\/www.eib.org\/en\/publications\/online\/all\/the-scale-up-gap\" rel=\"nofollow noopener\" target=\"_blank\">half<\/a> the capital of Silicon Valley peers. <\/p>\n<p class=\"wp-block-paragraph\">Many EU companies are pushed to seeking funding abroad, often <a href=\"https:\/\/euobserver.com\/207461\/eu-unveils-28th-regime-creating-bloc-wide-business-code\/\" data-type=\"link\" data-id=\"https:\/\/euobserver.com\/207461\/eu-unveils-28th-regime-creating-bloc-wide-business-code\/\" rel=\"nofollow noopener\" target=\"_blank\">resulting in them becoming listed on foreign<\/a> stock exchanges.<\/p>\n<p class=\"wp-block-paragraph\">Founded at Vlerick Business School in Belgium, the European Scaleups Institute is a network of entrepreneurship researchers from business schools around the EU, tracking the evolution of over 2m high-growth companies.<\/p>\n<p class=\"wp-block-paragraph\">\u201cHistorically, it has been Northern European countries that often dominated the ranks of high-growth,\u201d <a href=\"https:\/\/www.vlerick.com\/en\/insights\/european-scaleup-growth-normalisation-not-decline\/\" data-type=\"link\" data-id=\"https:\/\/www.vlerick.com\/en\/insights\/european-scaleup-growth-normalisation-not-decline\/\" rel=\"nofollow noopener\" target=\"_blank\">said<\/a> Veroniek Collewaert, entrepreneurship professor at Vlerick. <\/p>\n<p class=\"wp-block-paragraph\">\u201cThe latest data, however, suggests that Southern Europe has become one of the most dynamic regions on the continent,\u201d she added.<\/p>\n<p><a href=\"https:\/\/euobserver.com\/207461\/eu-unveils-28th-regime-creating-bloc-wide-business-code\/\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"400\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/08\/P-069136_00-02_01-ORIGINAL-682590-600x400.jpg\" class=\"attachment-thumbnail size-thumbnail wp-post-image\" alt=\"\"  \/><\/a><\/p>\n<p class=\"wp-block-paragraph\">Malta, Greece, and Portugal, were the strongest winners on the continent for consistency in scaling-up its up-and-coming businesses, with structurally improved positions in Spain and Italy, as well as Ireland.<\/p>\n<p class=\"wp-block-paragraph\">Conversely, the study found that traditional growth leaders, such as Europe\u2019s largest economy, Germany, as well as Nordic countries, experienced unexpected setbacks. <\/p>\n<p class=\"wp-block-paragraph\">Germany ended up below the EU average in the scale-up rate of its startups, with Sweden and Finland also recording declines.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThis emerging pattern reflects a broader rebalancing of Europe&#8217;s entrepreneurial landscape,\u201d Collewaert added.\u00a0<\/p>\n<p class=\"wp-block-paragraph\">\u201cWhile many Southern European economies were among the hardest hit during earlier economic crises, they are increasingly producing vibrant ecosystems capable of generating sustained business growth,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"The booming expansion of young, fast-growing firms and sustained growth achievers is providing European business with foundations for&hellip;\n","protected":false},"author":2,"featured_media":1148251,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5310],"tags":[217083,2000,299,1824,311647,220437,311645,220435,311646,220436],"class_list":["post-1148250","post","type-post","status-publish","format-standard","has-post-thumbnail","category-germany","tag-typedefinedterm","tag-eu","tag-europe","tag-germany","tag-identifier234","tag-identifier30","tag-namebusiness","tag-namedigital","tag-termcodebusiness","tag-termcodedigital"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/117094360240835006","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1148250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1148250"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1148250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1148251"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1148250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1148250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1148250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}