Communication from the commission to the European parliament, the council, the European economic and social committee and the committee of the regions europe’s next leaders: the start-up and scale-up initiative
Intermediary Org: EU Funded
High-growth firms create many more new jobs compared to other firms.1 Start-ups scaling up into bigger firms form a large share of these businesses. They increase EU innovation and competitiveness, strengthening the economy. Such “scale-ups” can also provide social benefits, including offering more flexible and modern working arrangements.
In the Single Market Strategy, the Commission announced that it will look at how to make the Single Market more efficient for start-ups and scale-ups. Ultimately, improving the ecosystem for start-ups and scale-ups in Europe will have a direct beneficial effect on jobs and growth in the EU. Start-ups, often tech-enabled2, in general combine fast growth, high reliance on innovation of product, processes and financing, utmost attention to new technological developments and extensive use of innovative business models, and, often, collaborative platforms. Several Member States have already put in place or are considering initiatives to create an environment conducive to innovation and entrepreneurship. As a result, there is no major difference between the EU and the US as regards the creation of new firms.3 This is particularly visible in the tech sector where EU companies are in the process of becoming world leaders in certain medium/high-tech sectors (e.g. engineering, automotive).