The European Commission (EC) recently unveiled the new ‘Start-up and Scale-up Initiative’. Its aim is to increase Europe’s competitiveness for entrepreneurs and innovative startups by reducing regulatory barriers.
Also read: ECB to EU: Tighter Regulations, Less Anonymity on Digital Currencies
Problems for European Startups
According to the pan-European Trade Association EBAN, Europe has more entrepreneurs per capita than the United States.
“The problem, however, is that European companies seldom grow to scale,” EBAN wrote. Unlike U.S. startups such as Apple, Amazon, and Google, European startups often remain one to three-person companies. Their innovative ideas seldom leave local economies, usually confined to just a single country.
Commissioner for Digital Economy and Society, Günther Oettinger, explained that many EU businesses remain small. They “fail after a few years, or decide to move to other countries rather than tapping into