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What Are the Best Countries for Startup Businesses in Europe?

November 18, 2022
Notebook with doodles around the word startup

In 2021, European startup companies brought in around $120 billion in funding.

Despite the global pandemic temporarily slowing down the number of startups in 2020, European startups were back in full swing soon after and experts believe this trend will continue.

Starting a successful company is fun, exciting and rewarding, but also hard work. So choosing the perfect destination to set up your company is vital.

The good news is that you came to the right place. Read on as we name the best countries for startup businesses!

The Republic of Ireland

Although it has a relatively small population compared to many other European countries, Ireland certainly packs a punch for an entrepreneur.

Since the turn of the century, the nation's economy has been booming. Granted, the “Celtic Tiger” felt the worldwide financial crisis of 2008, but its economy has been steadily recovering from 2014 onward.

The Netherlands

StartupBlink named The Netherlands the 11th best country in the world for a new company. They also state Amsterdam, the capital and most populous city, rose to 27th globally. And it thrives in Hardware & IoT.

The Netherlands has plenty of incentives to start a business. Some of these are the Netherlands Point of Entry and Techleap. They connect new firms to markets and the nation's economy, the most connected on Earth.

Another bonus of setting up here is how easy it is to open a bank account in The Netherlands.

The only slight drawback is the gulf of startup ecosystems. Amsterdam dominates the country. No other city in The Netherlands makes it into the top 100 global ranks for startups.

The Hague is the second top city, ranked 154th around the globe.

Germany

Germany is Europe's powerhouse. It has the largest economy on the continent and the fourth largest in the world. 

No wonder it's constantly rated one of the best nations for technology and startup brands. 

Unlike other countries on this list, Germany has a fair share of the wealth of areas across the nation. 

The nation has five cities ranking in the top 150 on the global index. These are Berlin (12), Munich (39), Hamburg (75), Cologne (135), and Frankfurt (146).

It's known for its overachievement in energy, the environment, transport, and fintech. 

Germany is welcoming to foreign visitors, immigrants, and investors. So you can expect warm welcomes wherever you end up. You will also recognize the high level of English, reasonable cost of living, and quality transport system. 

Estonia

According to The State of European Tech, the most startups per capita in Europe is in Estonia. It's the only eastern European state to make it on the list.

If you wish to set up a technology company in Europe, look no further than Estonia. Many digital savvy refer to the nation as E-Stonia, and it is easy to see why. 

With its focus on the digital world, it's no surprise the Baltic nation is doing well in marketing and sales. 

There's a strong startup development, which gives the area an energetic atmosphere. Numerous tech startups come to Tallinn to take advantage of its e-residency. This allows foreigners to conduct banking and run a company online.

It was the first nation to introduce such a measure. 

France

France flies below the radar compared to other nations receiving all the praise. Maybe it's only recently that Europe's second-biggest country began to flex its muscles. Nevertheless, it's now one of the most startup-friendly nations in Europe and the rest of the world. 

Paris is a primary reason France performs so well in the startup ecosystem. The city is the highest ranked in the EU. It's mainly due to its high performance in the shopping industry, both online and in-store.

Along with other states, you can easily set up a bunq business account for small companies in France.

Not only is France a stunning region for startup ideas and brands, but it’ an amazing place to live too.

In the North, you can admire bustling cities and breathtaking coastlines, and learn about one of the most historic areas in Europe. Down south, you can relax on sun kissed beaches and embrace the chilled lifestyle.

Sweden

Scandinavia is an excellent spot to start a business. Nevertheless, Sweden remains the best place to be in the region. And it's not just the best place in Scandinavia. It's the best place in Europe.

In 2020, startups here raised 1.3 billion EUR. Only 12 months later, in 2021, that figure grew to around 3.6 billion EUR!

In Sweden, there are direct and indirect factors that help startups get on their feet. 

Many people outside the country only hear and talk about the high taxes in Sweden. There's no doubt they're high, but its social safety net makes up for it. It allows people to express themselves and take risks while feeling supported by the government.

Sweden also has the eighth fastest internet speed on the continent (140.39 Mbps). And since the nation offers free education to people, there's a big skilled workforce.

Once you add everything up, it makes Sweden the best country in Europe for a startup business.

The Best Countries for Startup Businesses in Europe

Europe is a region bursting with opportunities for new companies. Each country and city offers a different incentive for entrepreneurs. But some places are better than others.

Luckily, you came to the right place. Because now you know the best countries for startup companies. So you can make the most of every benefit from whatever nation best suits your brand.

Once you decide on a nation, try bunq for free. Then you can watch your hard-earned cash pile up in your bank and enjoy growing a business!

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