European growth firms enter a new phase of maturity 

Drawing on data from approximately 2.1m legal entities across the EU, the European Scaleup Monitor 2026 tracks the evolution of high-growth companies between 2020 and 2024. The report identifies eight growth categories. These range from Scalers – companies growing their workforce by more than 10% annually over a three-year period, to the rare group of Consistent Hypergrowers – companies that sustain exceptionally high growth over multiple years. 

2024: A year of normalisation 

The headline finding is that 2024 was a year of normalisation. The share of Scalers fell slightly from 15.38% in 2023 to 15.03% in this period, while the share of High-Growth Firms declined from 5.56% to 5.16%. Similar reductions occurred across all other growth categories. 

Viewed in isolation, these declines might appear concerning. However, looking from a five-year perspective reveals a different story. 

From 2020 to 2024 there have been three distinct phases. During the pandemic years of 2020 and 2021, growth indicators were subdued as firms faced unprecedented uncertainty. A strong recovery followed in 2022 and accelerated further in 2023, producing the highest levels of growth observed in the monitor's history. The modest correction in 2024 therefore represents a return to more sustainable levels, rather than a deterioration of Europe's entrepreneurial ecosystem. 

Growth levels above pre-pandemic baseline 

Importantly, current growth levels remain well above their pre-pandemic baseline. The European economy may have lost some of the extraordinary momentum generated during the recovery period, but it has retained much of the structural improvement that emerged in its aftermath.  

Beyond this overall trend, the monitor highlights an important shift in the geography of European growth. 

Historically, it has been Northern European countries that often dominated the ranks of high-growth entrepreneurship. The latest data, however, suggests that Southern Europe has become one of the most dynamic regions on the continent. Portugal continued its multi-year upward trajectory, while Greece recorded the strongest improvement of any EU member state, increasing its share of Scalers by nearly three percentage points. Spain and Italy also maintained strong positions across multiple growth categories. 

Rebalancing of Europe’s entrepreneurial landscape 

This emerging pattern reflects a broader rebalancing of Europe's entrepreneurial landscape. While many Southern European economies were among the hardest hit during earlier economic crises, they are increasingly producing vibrant ecosystems capable of generating sustained business growth. 

At the same time, several traditional growth leaders experienced setbacks. Germany, Europe's largest economy, saw its share of Scalers decline from 12.5% to 10.5%, placing it below the EU average once again. Sweden and Finland also recorded declines. 

The report also sheds light on where growth is occurring across sectors. Information and Communication remains Europe's leading growth industry, with Administrative and Support Services also performing strongly across multiple growth categories. 

Policy transformation creating opportunities for entrepreneurs 

Also noteworthy is the continued rise of the Electricity, Gas and Steam sector. Growth indicators in this sector have increased steadily over the past five years, mirroring Europe's accelerating energy transition. The share of Scaleups in the sector has more than tripled since 2020, highlighting how major societal and policy transformations can create opportunities for business expansion. 

While attention often focuses on Europe's largest firms, the monitor highlights the importance of the broader growth pipeline. In 2024, 1.38% of companies qualified as Gazelles – young firms that sustain high growth over multiple years – and 0.46% qualified as Scaleups, representing the youngest group of Consistent Hypergrowers. 

While these percentages may appear small, the reality is that they represent thousands of firms that are creating jobs, driving innovation and shaping Europe's future competitiveness. Their continued presence, even as overall growth rates moderate, suggests the foundations of Europe's growth ecosystem remain resilient. 

Veroniek Collewaert, Professor of Entrepreneurship, says: “The broader European story is one of normalisation, not decline. Growth rates have cooled after the post-pandemic surge, but the continued presence of Gazelles and Scaleups shows that the pipeline of ambitious growth firms remains intact. 

“What matters is not only the percentage of firms growing fast, but the absolute number of companies behind those percentages. Even when rates normalise, a larger pool of Gazelles and Scaleups gives Europe a stronger foundation for future innovation, job creation and competitiveness.” 

A maturing European entrepreneurial economy 

Taken together, the monitor’s findings point toward a European entrepreneurial economy that is becoming more balanced and mature. The extraordinary post-pandemic surge has ended, but the underlying ecosystem remains healthier than it was five years ago. Growth is becoming more geographically diverse, new sectors are emerging as engines of expansion, and the pipeline of ambitious firms remains intact. 

The message is therefore one of cautious optimism. Europe is no longer experiencing a growth boom, but neither is it facing a growth crisis. Instead, it appears to be entering a more sustainable phase of entrepreneurial development – one that may ultimately prove more durable than the exceptional highs of the post-pandemic rebound. 

Join our Centre for Excellence 

If you’re leading a young, high-potential venture, join our Centre For Excellence in Scale-Ups. It’s an inspiring networking community and forum for dialogue – and it’s where you can access leading research into scale-up success. 

The European Scaleup Monitor is produced annually through a collaboration of eight leading European universities and business schools that form the European Scaleup Institute. Vlerick Business School is one of the initiative’s founding partners, alongside institutions including WHU – Otto Beisheim School of Management, ESADE, Erasmus University Rotterdam, ESSEC Business School and LUISS Business School.