The entrepreneurial landscape in the European Union (EU) is thriving, with the number of new businesses outpacing closures. In 2022, the EU saw the establishment of 3.4 million new companies, compared to 2.8 million that closed their doors, according to the latest Eurostat data. This positive trend indicates a robust business ecosystem across the region.
Among the EU member states, Lithuania, Portugal, and Estonia stand out for their impressive rates of new business formation relative to their market sizes. Lithuania led the way with a remarkable 18.3% increase in new businesses, followed closely by Portugal at 16.7% and Estonia at 16.6%. These figures reflect a vibrant entrepreneurial spirit in these nations.
On the other end of the spectrum, Austria (6.2%), Denmark (7.4%), and Italy (7.9%) reported the lowest rates of enterprise growth, suggesting a more cautious approach to new business ventures in these countries. Additionally, Estonia, Bulgaria (20.6%), and Ireland (15.6%) recorded the highest proportions of business closures, indicating some challenges within their respective markets.
Overall, the EU is home to over 32 million businesses, employing around 160 million individuals. Notably, micro and small enterprises—defined as those with fewer than 50 employees—constitute a staggering 99% of the EU’s business landscape.
Despite their size, these small businesses contribute significantly to the economy, generating nearly one-third of the EU’s total turnover, which amounts to €11.9 trillion out of a total of €38.3 trillion.
In terms of sector performance, the industry sector emerged as the top generator of turnover in 2022, accounting for 35%, followed by services at 30%, trade at 29%, and construction at 6%. However, it is the services sector that employs the most individuals, making up 51% of the workforce, followed by industry, trade, and construction.
The overall data suggests that the EU’s business environment is not only growing but also diversifying, with significant contributions from small enterprises and various sectors.
