Micro and small businesses dominate the EU’s economic landscape, representing a remarkable 99% of all companies within the bloc, according to the latest Eurostat data.
Despite their size, these enterprises – defined as employing fewer than 50 people – play a critical role in Europe’s economy, collectively generating nearly one-third of the EU’s total turnover, approximately €11.9 trillion out of €38.3 trillion.
EU sees net growth in new businesses despite closures
According to the Eurostat data, in 2022, the EU experienced a net increase in companies as more businesses opened than closed. With 3.4 million new companies registered and 2.8 million closing, the bloc’s business ecosystem clearly experienced resilience in the face of economic challenges.
Lithuania, Portugal, and Estonia led in relative business growth, with impressive rates of 18.3%, 16.7%, and 16.6%, respectively. Meanwhile, Austria, Denmark, and Italy reported the lowest new business rates, likely due to mature market conditions or regulatory factors.
Estonia, Bulgaria, and Ireland report highest business closure rates
While business creation outpaced closures, some countries faced notable economic pressures. Estonia saw a high closure rate at 25.1%, with Bulgaria (20.6%) and Ireland (15.6%) following closely. These figures highlight the challenges of sustaining businesses in certain markets, where economic conditions or competitive pressures may impact stability.
Key sectors: industry leads in turnover, services in employment
The EU’s industrial sector, while comprising only 8% of all enterprises, led with the highest turnover generation, contributing €13.6 trillion or 35% of total turnover. Meanwhile, the trade and services sectors employed the most people, with services alone accounting for 51% of the EU’s workforce, showing the sector’s crucial role in supporting employment across the continent. In contrast, the construction sector, representing 12% of EU enterprises, contributed a modest 6% to the total turnover.
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Main photo credit: Shangyou Shi, Unsplash
