European entrepreneurship: Trends in start-ups and scale-ups in France, Germany and the UK

This policy brief examines entrepreneurial ecosystems in France, Germany, and the United Kingdom using data on more than nine million firm births between 2009 and 2023. The study aims to assess both the quantity of start-ups and their quality, measured by their potential to become scale-ups. By analyzing regional patterns of entrepreneurship, the research provides new insights into Europe's competitiveness and the factors that influence entrepreneurial success. A key finding is that all three countries display considerable unrealized scale-up potential. While many firms exhibit characteristics associated with future growth, the number that achieve large-scale expansion falls short of expectations. This suggests that barriers to growth have become increasingly important in recent years. The study also highlights remarkable regional differences. Entrepreneur ial activity in France is concentrated in major metropolitan areas such as Paris, Lyon, and Marseille. In the United Kingdom, London ranks first in terms of start-up quantity, while Cambridge and Oxford stand out for their high entrepreneurial quality. Germany presents a more decentralized pattern, with Munich emerging as a leading hub, but also research-intensive regions such as Heidelberg and Bonn showing strong performance. Unlike in the United States, where the relationship between the number of start-ups and the quality of entrepreneurship is relatively weak, European regions that generate more start-ups also tend to produce more high-quality firms. This suggests that policies encouraging entrepreneurial entry can simultaneously im prove growth outcomes.