| I'm not going to include Russia or Serbia or even Turkey, when talking about European statistics on entrepreneurship, because the EU is the overarching force that dictates widespread European policy. Talented entrepreneurs from Russia or the Balkans go to London or the US to set up shop anyways (my cofounders being an example). The UK's business policy since Brexit has been largely dictated by factors outside its control, in the hallways of Washington DC and Brussels. The UK is no longer the forcing function on EU business policy that it was before - it's quite frankly the other way around now. On founder culture and aspirations, it might be fair to say that the social welfare net provided by the EU countries is generous enough that it discourages entrepreneurship, compared to say the US or China or even India. I won't fault the social net ever, but the fact of the matter is that a growing economy is necessary to facilitate a growing social net. But EU policy has been drafted to strongly favor the incumbents over the startups, to favor the Goliaths over the Davids - even if David happens to be a middle market company trying to make its mark. It's also why EU companies in that position strongly favor American partners instead of European ones - Goliaths don't want to innovate, but they want new innovation regulated so that it doesn't hurt their bottom line. Another factor is that 10 years since Brexit, the EU still hasn't created a viable enough exit alternative that could replace the London of the 2010s. While it's much easier for an American company to go public, EU policy does not make it easy. Which is why founders look at acquisitions or PE as a much more viable route to exit. > I could easily imagine a startup here developing the next generation of car control system and then selling the IP to one of those companies as the exit strategy. That's already happening across the EU, and herein is why it's very difficult to create homegrown champions. American companies and Chinese companies are encouraged to control the entire vertical chain, it being a matter of policy in the latter. EU companies have to resort to licensing agreements and a potential future acquisition. |