The European Union is viewed as “fragmented, bureaucratic and risk averse, particularly when it comes to supporting companies beyond the early stages of growth”, revealed a study published by the European Investment Bank (EIB), in collaboration with the European Commission, on Monday 12 January.
Under the InvestEU Advisory Hub, the EIB has examined the reasons why innovative startups and scaleups in the EU decide to relocate and identified measures that could help Europe to better retain high-potential firms. According to the study, company founders and executives often cited access to capital, proximity to large and unified markets, regulatory simplicity and availability of experienced commercial and sales talent as reasons for moving. The United States is largely perceived as offering a more attractive environment in all these respects.
The study recommends that the EU modernise and unify regulations so that new technologies can be tested and launched without running up against compliance requirements. It must also unlock more funding and reduce start-up costs, particularly for companies specialising in digital and cutting-edge technologies that need long development periods.
The EU also needs to review its labour and immigration policies, which limit flexibility and slow down recruitment, according to the study. Finally, it needs to invest in education, mentorship and support systems for company founders that equip entrepreneurs to navigate global markets from the outset.
Read the study: https://aeur.eu/f/k8g (Original version in French by Anne Damiani)