The European Commission has unveiled a new strategy aimed at boosting the growth of small businesses and preventing successful startups from relocating outside the European Union—particularly to the United States.
“Startups and scaleups are vital to Europe’s future. They fuel innovation, sustainable growth, quality jobs, and investment, while reducing strategic dependencies,” the Commission stated during the launch.
Despite a high number of startups being founded in the EU—more than in the US—almost 30% of EU unicorns (startups valued at over $1 billion) have moved their headquarters abroad over the last 15 years, mostly to the US, noted Commission Vice President Stéphane Séjourné.
The Commission’s goal is to retain these high-growth companies within the EU by supporting their expansion and financing needs.
Key Measures Proposed:
20 targeted initiatives to reduce the outflow of startups.
Focus on strategic sectors: AI, quantum tech, advanced semiconductors, biotechnology, clean energy, defense, space, and robotics.
Simplification of regulations in insolvency, labor, and tax law.
Streamlined digital communication between companies and government agencies across the EU.
Enhanced funding opportunities and improved access to skilled labor.
These measures form part of the EU’s broader commitment to creating a competitive and innovation-friendly environment that allows startups to grow and thrive without leaving the continent.
