Europe is progressing in building startup-friendly ecosystems – report

Europe Startup Nations Alliance (ESNA) has released the Startup Nations Standard (SNS) Report 2024 at Tech Arena Stockholm, offering a benchmark for assessing progress across 24 European countries in creating environments favourable to startups.

The report evaluates the implementation of the eight Startup Nations Standards, revealing an average of 61 per cent implementation rate. The report highlights progress in access to finance and talent attraction, crucial drivers of Europe’s startup competitiveness.

Structured around eight core Standards of Excellence, the report assesses how each nation performs against these standards, highlighting key strengths and areas for improvement in:  
1. Fast Startup Creation, Smooth Market Entry; 2. Attracting and Retaining Talent; 3. Stock Options; 4. Innovation in Regulation; 5. Innovation in Procurement; 6. Access to Finance; 7. Social inclusion, Diversity and protecting democratic Values; 8. Digital First.

Key highlights from the 2024 report include:

• Access to Finance and funding opportunities are enhanced with an average of 72 per cent implementation rate across the surveyed countries, with seven countries performing at 100 per cent implementation rate. It is the best-performing standard with the steepest progression.
• Attracting and Retaining Talent stands among the best-performing standards with its 64 per cent implementation level and three countries achieving full implementation (100 per cent). Nine countries have a programme in place to encourage the return of EU tech nationals who emigrated outside of the continent.

• Fast Startup Creation, Smooth Market Entry. Europe has been simplifying and accelerating the process of setting up a business reaching a 70 per cent implementation rate. Documents emitted by a foreign entity are accepted in 19 of the surveyed countries. As per the business setup, it can be carried out within one day and for less than €100 in four countries.
• Digital-first is gaining traction across Europe, with 20 countries offering a variety of administrative processes online and 19 implementing national digitalization strategies, reaching an average implementation level of 70 per cent.

The 2024 edition of the report provides comprehensive data on the challenges and successes faced by 24 European countries. It provides a detailed analysis of how each country is adopting best practices, creating a favourable environment for entrepreneurs, and scaling their startup ecosystems.

“The SNS Report is an essential tool for policymakers, governments and entrepreneurs to assess how conducive their countries’ ecosystems are to fostering innovation and scaling businesses,” says Arthur Jordão, Executive Director at ESNA.

“As Europe continues to face rapid changes in technology, regulation and the global economic landscape, this report provides valuable insights into the areas where governments can improve to make Europe a global leader in fostering a vibrant startup culture.”

The report was unveiled in late February during a keynote presentation by Linda Capusa, Board Member at ESNA followed by a panel discussion addressing challenges such as scaling startups, funding innovation, and fostering cross-border collaboration, emphasizing Europe’s role in driving global innovation.

Visit here to download a short version of the SNS Report and access the interactive version that provides direct access to country-specific insights and key data, featuring tools to visualize individual countries’ performance.