EU Startups & Scale-Ups: The Key to Economic Resilience, New Study Finds
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By Priyashah | August 26, 2025
(world-today-news.com) – As austria and the wider European Union grapple with lingering economic fallout from the COVID-19 pandemic and global trade uncertainties, a new study from sage highlights a critical engine for future prosperity: startups and scale-ups. The report, titled “scaling for Growth – Unlocking the Potential of Europe’s Startups and Scale-ups,” reveals these dynamic companies are not just creating jobs, but are vital for bolstering economic resilience and driving innovation across the continent.
Austria, in particular, continues to face economic headwinds. The nation’s GDP hasn’t fully recovered to pre-2020 levels, and is further challenged by fluctuating global trade policies, as previously reported by LEADERSNET.These challenges underscore the urgency for innovative solutions and a renewed focus on fostering growth within the EU.
Rapid Growth & Meaningful Potential
The Sage study,based on data from over 7,500 startups and scale-ups across 15 EU member states (with comparative data from the US,UK,and Canada),paints a compelling picture. European scale-ups are growing at an average rate of 38% per year – nearly twice the growth benchmark set by the OECD.
However,realizing this potential requires addressing key obstacles. The study identifies four crucial factors impacting the success of European scale-ups:
Digital Adoption: While heavily reliant on digital tools, access and acceptance vary, especially among newer generation companies. Gaps in access to technologies like electronic accounting, open-finance tools, and integrated AI systems are hindering productivity and cross-border expansion.
Cross-Border trade: A streamlined internal market is essential, but regulatory fragmentation, lack of harmonization, and complex compliance regulations are holding companies back.
access to Financial Resources: While most scale-ups secure external capital, next-generation companies struggle to move beyond early-stage financing. Onyl 5% of global risk capital investments currently flow into the EU, highlighting the need for increased private capital development. Access to Talent: A shortage of skilled workers in digitization, AI, and technical fields remains a significant challenge across the continent. 55% of surveyed scale-ups cited skills shortages as a major obstacle to growth.
Digital Tools are Core to Success
The study also reveals a high adoption rate of Enterprise Resource Planning (ERP) systems – software that integrates and automates business processes – among European scale-ups, with 95% currently utilizing them. Furthermore, 91% of companies surveyed confirmed that digital tools are crucial for growth, emphasizing the