Sage unveils insights on unlocking the potential of Europe’s start-ups and scale-ups

Sage has released a major new study exploring the growth and competitiveness of Europe’s most dynamic scale-ups. The research is based on a landmark survey of over 7,500 senior leaders across 15 EU Member States, alongside comparative insights from the UK, USA and Canada. It paints a clear picture of businesses that are growing fast, scaling internationally, and driving innovation – yet still facing systemic hurdles that prevent them from reaching their full potential.

The results highlight an urgent opportunity for European policymakers: to unlock scale-ups’ full contribution to innovation, employment, and economic resilience by improving access to digital tools, finance, cross-border markets, and skilled talent.

Top findings

• European scale-ups are outperforming global benchmarks, growing at an average annual rate of 38% — nearly double the OECD threshold for high-growth firms.
• Technology is a key driver of growth, with 91% of scale-ups saying digital tools are critical to their success. One-third are already using AI, and the most digitally mature firms are growing 32% faster than others.
• International ambition is high, with 98% of surveyed firms either active in global markets or planning to expand internationally. Over half (52%) of scale-up revenue comes from outside their home country.
• Confidence is strong, with 87% expecting faster growth in 2025 and 93% intending to keep their headquarters in Europe - reinforcing the EU’s appeal as a hub for innovation and scale.
• But serious challenges remain: access to capital, regulatory fragmentation, and talent shortages are still holding firms back. 67% of next-gen scale-ups struggle to raise equity funding, while over half cite EU regulation as a growth barrier.

Derk Bleeker, Chief Commercial Officer, emphasised Sage’s commitment to supporting European SMEs:

“Europe is at a turning point. In a more competitive and unpredictable global environment, this new research demonstrates that start-ups and scale-ups will be central to the EU's future prosperity, creating jobs, driving innovation, and strengthening economic resilience. Yet in order to thrive, they must overcome significant barriers including fragmented regulation, limited finance access, and digital policies that don't always facilitate their growth.

Download the report in full.