A study by Sage reveals that 91% of companies consider digital tools and artificial intelligence crucial for their success, while calling for more access to funding and talent to solidify their global leadership.
The technology firm Sage has released a new study focusing on the central role that European start-ups and scale-ups play in the continent’s economy. The report, based on a large survey of over 7,500 senior executives in 15 EU countries—with comparisons to the UK, the US, and Canada—provides a clear snapshot of companies leading growth, internationalization, and innovation, but that still face systemic barriers that limit their full potential.
Record Growth and Global Ambition
According to the study’s findings, European scale-ups are growing at an average annual rate of 38%, nearly double the threshold set by the OECD to classify a company as high growth. This figure positions the European ecosystem above the global average and underscores its potential as a driver of employment and economic development.
One key factor identified by Sage is the technological commitment: 91% of the surveyed companies say that digital tools are essential for their success, and one-third are already using artificial intelligence in their daily operations. The most digitized companies grow 32% faster than their competitors, highlighting the direct relationship between digital maturity and the ability to scale the business.
International outreach is also a constant: 98% of European scale-ups are either present in global markets or plan to expand in the short term. More than half of their revenue (52%) comes from outside their home country, reinforcing the image of Europe as an export-oriented and competitive player on the global stage.
Optimism for 2025, but Ongoing Challenges
Confidence in the future is high: 87% of companies expect to accelerate their growth by 2025, and 93% affirm that they will maintain their headquarters in Europe, enhancing the continent’s attractiveness as a hub for innovation and business development.
However, Sage’s report warns that structural challenges persist, hindering the qualitative leap for European scale-ups. Access to funding remains a major obstacle: 67% of next-generation companies struggle to attract investment, while regulatory fragmentation in the EU is cited by more than half of respondents as a significant barrier to growth.
These hurdles are compounded by a shortage of skilled talent, particularly in technological fields, and digital policies that, according to business leaders, do not always keep pace with or address the needs of innovative projects.
Call for Supportive Policies
Derk Bleeker, Sage’s commercial director, has emphasized the importance of addressing these challenges to ensure the role of SMEs and scale-ups in Europe’s economic future: “We are at a turning point. The report shows that start-ups and scale-ups will be crucial to the EU’s prosperity, creating jobs, driving innovation, and bolstering economic resilience. But to thrive, they need to overcome obstacles such as regulatory fragmentation, limited access to funding, and digital policies that do not always facilitate their growth.”
The Sage report concludes with a call for European policymakers to facilitate access to digital tools, funding, and international markets, as well as to simplify regulations and promote talent so that scale-ups can unleash their full innovative and competitive potential.
Source: Sage