Europe accelerates towards a common entrepreneurial ecosystem: progress in startup support standards in 2024 and beyond.

Entrepreneurship innovation is gaining momentum across Europe, thanks to an unprecedented collective effort. The Europe Startup Nations Alliance (ESNA), an initiative backed by the European Commission, has made a significant step forward with the release of the Startup Nation Standards Report 2024. This report evaluates how European countries are adopting eight common standards designed to support the creation and growth of startups.

In an increasingly competitive global landscape, this alliance reflects a clear intention: to build a more agile, unified, and inclusive entrepreneurial ecosystem across Europe. The report highlights significant progress, but also ongoing challenges that need to be tackled together if Europe is to establish itself as a global leader in innovation.

What are the Startup Nation Standards?

The eight standards outlined by ESNA aim to reduce barriers to entrepreneurship, improve access to talent and funding, promote diversity, and digitise interactions between startups and governments. A total of 26 European countries have embraced these principles, which include:

• Simplified and digital company registration processes.
• Attracting and retaining international talent.
• Using stock options as a competitive tool.
• Regulatory innovation.
• Enabling startups to access public procurement.
• Improving access to financing.
• Promoting diversity and inclusion.
• Enhancing digitalisation and administrative interoperability.

These standards aren’t mandatory but serve as a guide for public policies that create a more conducive environment for entrepreneurship across Europe.

One key insight from the report is that 14 out of 24 countries have surpassed the average standard implementation rate of 61% in 2024. Notably, France (93%) and Spain (91%) lead the way, demonstrating significant progress towards uniform support for startups. However, full implementation is still uneven, with some countries ahead of others.

Key advances by standard

• Company registration: 70% of countries now offer a quick, low-cost, and digital process for setting up a business. Estonia is leading this change, while others still face bureaucratic challenges.
• Talent attraction: With a 64% implementation rate, most countries have introduced special visas or programmes to bring in international talent, though some countries still face migration barriers or slow processes.
• Stock options: At 62% implementation, this standard remains complex. Differences in taxation and legal frameworks make it difficult for European startups to compete with Silicon Valley or Asia in terms of stock-based compensation.
• Regulation and innovation: At just 43% implementation, this area remains behind. Only a few countries have introduced regulatory sandboxes or legal frameworks tailored to new technologies like blockchain or AI.
• Public procurement: With 55% progress, there is growing opportunity for startups to supply solutions to public administrations, although barriers still exist, such as requirements for prior experience in tenders.
• Access to financing: This is one of the strongest performing standards, with 72% implementation. Public funds and co-investment policies have increased, and tax incentives for investors are becoming more widespread. Countries like France, Germany, Portugal, and Finland are leading the charge here.
• Diversity and inclusion: This standard shows moderate progress, with a 51% implementation rate. While most countries recognise its importance, more specific policies are needed to drive the inclusion of women and underrepresented groups in the entrepreneurial ecosystem.
• Digitalisation and interoperability: With 70% compliance, Europe is progressing towards a digital administration that simplifies processes for startups. However, there is still room for improvement, particularly in cross-border procedures.

Spain as a European leader

Spain ranks among the leaders in Europe when it comes to supporting startups, with a 91% overall compliance according to the ESNA report. The country excels particularly in regulatory innovation and access to financing, both achieving a perfect score of 100%, and in digitalisation, with a 99% score. Spain achieves an 89% score in company registration, offering an efficient and accessible environment for entrepreneurs.

The attraction and retention of talent, at 88%, has been enhanced by initiatives such as the digital nomad visa and the startup law. Progress has also been made in the use of stock options (88%), boosting startups’ competitiveness in talent acquisition.

However, the report also highlights areas for improvement, particularly in diversity and social inclusion, where Spain scores 75%, showing that there is still work to be done in ensuring equitable representation in the entrepreneurial ecosystem.

The Startup Nation Standards Report 2024 not only measures progress but also signals a shift in mindset. Europe is aligning its approach to entrepreneurship, which is excellent news for those innovating from the continent. A more predictable and less fragmented environment with greater opportunities makes it easier for startups to emerge, grow, and scale without needing to move to other markets.

The real challenge now is to accelerate the adoption of the remaining standards — especially in regulation, diversity, and public procurement — and to ensure balanced progress across all countries. This is the key to positioning Europe as a global leader in the startup ecosystem.

To learn more about this European entrepreneurship initiative, visit the monograph European Entrepreneurship Initiatives – ESNA.