Why should governments pay attention to start-ups? There are many possible answers. One important reason is that they are a motor for growth. Unsurprisingly, employment growth at European start-ups far outpaces the employment growth rate of the European economy. In recent years the gap has grown wider as Europe's tech startup communities have flourished and employment growth has accelerated, in stark contrast to the slowdown observed in the rest of the economy. 2020 may have temporarily eroded the pace of growth of start-up employment, but the gap with European employment growth remains colossal.
Startups employment YoY growth (%)
EU employment YoY growth (%)
- Europe employment growth rate sourced from EuroStat. Start-up employment data sourced from Dealroom.