Business in Europe

Businesses are the backbone of the EU economy, driving employment, economic growth, and competitiveness. They create millions of jobs across various sectors, from manufacturing and services to technology and finance, providing stability and income for workers. Small and medium-sized enterprises (SMEs), which account for the majority of businesses in the EU, are particularly crucial in generating local employment and fostering entrepreneurship. They create millions of jobs across various sectors, from manufacturing and services to technology and finance, providing stability and income for workers. Beyond job creation, businesses fuel economic growth by increasing production, enhancing efficiency, and boosting innovation. Their investments in infrastructure, technology, and workforce development lead to higher productivity and competitiveness within the EU and globally. The interconnected nature of EU economies means that businesses operating across borders create strong value chains, linking industries and markets throughout the region. Furthermore, tax revenues generated by businesses support public services, infrastructure projects, and education, reinforcing long-term economic stability. As businesses expand, they attract further investment, create new opportunities, and ensure that the EU remains a dynamic and prosperous economic powerhouse. 0{{current_slide_index}}-0{{total_slide_count}}

A legacy dating back millennia

Europe has a long history of business. Be it manufacturing, trade, or services, Europe has pioneered technology and innovation, is synonymous with quality manufacturing, has played a leading role in global trade, and is the birthplace of modern corporate structures.

Several European businesses are over 1000 years old, and some of the younger start-ups are global technology leaders.

A diverse landscape

There is no single type of European business. There are millions of companies of all sizes, from self-employed, tradespeople or family-owned retail businesses to multinational companies.

Made in Europe

Europe’s economy is highly diversified, but manufacturing is still the largest contributor to both total added value and employment. European products are known worldwide for their design and quality.

employed in the manufacturing sector

added value created by manufacturing

Driving innovation

European companies are the main drivers of innovation. Research and innovation lay the foundation for productivity, growth, long-term competitiveness and the green and digital transition.

invested in R&D in 2023

companies are innovative businesses

Experts at exports

European businesses export across the globe. Exports fuel economic growth, create jobs, and strengthen Europe’s global influence in key sectors. Moreover, 85% of economic growth in the coming years will be generated outside the EU.

Total exports to non-EU countries surpassed 2.5 trillion EURO in 2023

EU exports support over 30 million jobs. 1 in 7 jobs in the EU depends on exports

Overcoming challenges

Throughout their history, European businesses have overcome challenges ranging from economic crises, conflict and natural disasters. In today’s globalised world, European businesses face new challenges, including a loss of competitiveness, under-investment, sluggish growth, overregulation, and high energy prices. 

We propose concrete solutions to put the European economy back on track in the policy priorities of this website. Here is a snapshot of some of today’s challenges:

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The share of firms expecting to increase investments fell to 7% in 2024.

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In 2023, the EU27 economy is approximately 4.7% smaller than the US economy.

Between 2019 and 2021, FDI in the EU dropped by almost two thirds, while the opposite occurred on the other side of the Atlantic.

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The share of EU firms investing in expansion is 6 percentage points below the share of US companies.

Electricity prices are 2-3 times those in the US and natural gas prices are 5-6 times higher in 2023.

Only four of the world’s top 50 tech companies are based in the EU.

From 2017 to 2022, the European legislator produced a total of 850 new regulatory obligations directed towards companies, representing more than 5,000 pages of legislation.

Only 5 of the 50 largest companies in the world (by revenue) are based in the EU.

A new focus

Having acknowledged that Europe’s prosperity is under threat, EU leaders have committed to making competitiveness the top priority for the next five years.

We welcome a new focus on fostering innovation, decarbonising industries while maintaining economic strength, securing supply chains to reduce dependencies, simplifying regulations, strengthening the Single Market, improving financing and investing in workforce skills.

What’s next?

Supported by the new political focus on competitiveness, European businesses will play a key role in reigniting sustainable growth.