Looking to start a small business in Europe? The top 10 cities offer a supportive business environment, a skilled workforce, and a thriving economy.
Europe is a lovely place to do business, accounting for € 4,300 billion in global trade. It has a large and dynamic market, a highly skilled workforce, a solid commitment to research and development, and several free trade agreements.
Several towns in Europe are well-known for their flourishing business communities, innovative technologies, and dynamic startup ecosystems. Though Europe’s market is still at the size of the US marketplace, it has seen tremendous expansion in recent years.
There are many business opportunities outside Europe; however, if you are looking to expand your business into Europe, we can help you find the right place. We have conducted a study to determine which European cities are best for business growth. Take a look at where the European business scene stands in 2023 and what we might expect in the future:
Best Cities to Setup a Small Business in 2023
London
London is the leading financial center in Europe and the world. It is home to the London Stock Exchange, the world’s largest stock exchange by market capitalization. London hosts almost 70% of the UK’s private equity and venture capital investors. Within the UK itself, London is the leader when it comes to startup activity.
London, the capital of the UK, is ahead in terms of new and active startups, as well as the size of funding they receive. This trend is likely to continue shortly. It has many fast-growing companies, with 72 making this year’s Inc. 5000 Europe list.
Berlin
Berlin is like Europe’s version of Silicon Valley, known for its remarkable advantages, diversity, and welcoming to everyone. It’s a great place if you want to start your own business because office spaces are reasonably priced, and living costs are affordable. People who love creating new things will feel right at home here.
Berlin is a good choice if you need money for your business. Investors and the government offer financial help and can give you loans you can repay over a long time with a fair interest rate. This makes it easier to make your business dreams come true in Berlin.
Barcelona
Barcelona is a tech startup hub in Europe. It is known for its startup success stories and its attractive beachside lifestyle. Nearly two-thirds of the city’s startup founders have come from abroad. This is not surprising because the city is not too expensive to live in. It’s by the beach and has a good lifestyle. People there live well.
The startup community is robust and vibrant, housing numerous incubators and accelerators on the lookout for the next groundbreaking concept (and fluency in Spanish isn’t even a prerequisite). Tech and startup meet-ups occur frequently, from intimate gatherings to grand events like the Mobile World Congress. While Madrid might be Spain’s legal capital, Barcelona unquestionably takes the lead regarding startups.
Paris
Paris is located on the Seine River in the north-central part of France. The city is situated in a basin, which is surrounded by hills. The Seine River has played a significant role in the development of Paris, as it has been used for transportation, commerce, and recreation.
Paris isn’t just the capital of France – it’s a significant hub for global business and a beautiful spot for small businesses in Europe. The city has a strong economy, lots of money available to help, and many super-skilled people ready to work. This all means that small businesses can have a great chance to do well and get bigger in Paris.
But that’s not all! Paris is also getting known for its startup scene, which means more and more new businesses are starting there. The city really helps new businesses by making things easy for them. It’s like Paris gives entrepreneurs a big thumbs-up and makes them feel welcome.
And guess what? Paris has loads of brilliant people because it has some of the world’s best schools and research places. So, businesses can find smart folks to hire and work with.
Amsterdam
Amsterdam is located in the Netherlands, which is a country in northwestern Europe. Since the 20th century, Amsterdam’s economy has diversified, and it is now a major center for tourism, education, and technology. The city is built on a number of canals, which were initially built for defense and water management. The canals also played an essential role in Amsterdam’s economic development, as they facilitated the transportation of goods and people.
Amsterdam is a popular tourist destination, so there is a lot of opportunity for businesses that cater to tourists. This could include tour companies, souvenir shops, and restaurants serving traditional Dutch food. This is an excellent industry for small businesses, as you can start a restaurant, cafe, bar, or food truck.
There is a demand for all sorts of services in Amsterdam, so there is an opportunity for small businesses in just about any industry. This could include things like cleaning services, dog walking services, and personal training services.
Budapest
Budapest, renowned for its captivating landmarks, stands as a sought-after destination for urban adventurers. Interestingly, beyond its tourist appeal, Budapest has emerged as the top choice among European cities for kick-starting innovative startups. A significant contributor is the remarkable cost savings that businesses can experience here. Hungary boasts a corporate tax rate of merely 9%. To put it in perspective, this rate is 10% lower than the prevailing tax rate in the United Kingdom.
Furthermore, Budapest offers a hospitable environment for product-based businesses with global aspirations. Exporting goods from Hungary is both cost-free and efficient, requiring just around one hour on average to coordinate the process.
Beyond its economic merits, Budapest provides an array of recreational opportunities. Boasting a repertoire of over 2,700 cafes, restaurants, and bars, the city ensures ample options for savoring authentic Hungarian meals, such as the recommended traditional goulash, or unwinding with a drink after a fulfilling day of work.
Stockholm
This city, home to around 1.5 million people, is famous for being a hub where new businesses called ‘startups’ thrive, thanks to a rise in both venture capital and government funding. It’s the perfect destination for startups and small business owners aiming to create positive social or environmental changes. Some well-known examples of successful startups from here include Spotify, Skype, and Mojang, which created Minecraft.
After Silicon Valley, Stockholm has the most companies worth billions for everyone living here. Many healthcare businesses, companies dedicated to decreasing food wastage, and innovative EdTech initiatives can be found in this diversified metropolis. Stockholm is where you need to be if you’re an entrepreneur searching for seed finance, an accelerator program, or to attract investors. Furthermore, Stockholm is well-known for its high quality of life.
Lisbon
Lisbon, a big and bustling city in Portugal, is the country’s capital and a magnet for tourists. Every year, lots of people come to visit Portugal because of Lisbon. It’s known as the best place in the world for remote work. Why? Well, it has a mix of good things like a fantastic culture, lots of things to do, easy ways to get around, not-so-expensive places to live, and ingenious tech people.
But guess what? Lisbon isn’t only about vacations and sightseeing. It’s also becoming famous for starting new businesses. People say it’s one of the top 10 cities to start a brand-new company, and it even got the 6th spot on that list!
Lisbon gets around 150 million euros invested in it every year. There are a few reasons why startups love this city: first, it has excellent buildings and venues to help them grow; second, it’s full of people into super-smart computer stuff and data; third, it’s a place where women in business are rocking it; and fourth, it gives startups a good deal for what they spend.
Milan
Milan is the economic powerhouse of Italy, and it is home to a thriving startup scene. The city is home to many successful startups, including Yoox Net-A-Porter, Fastweb, and Candy Crush Saga. Milan is also home to some accelerators and incubators that help startups get started and grow.
If you are considering establishing a startup, Milan is a great place to do it. The city has a strong economy, a supportive business environment, and a large pool of skilled talent. This makes it an attractive place for startups to launch and grow their businesses.
Oslo
Oslo, the capital of Norway, has a strong economy and is a great place to start a startup. Here are some of the reasons why:
It is home to several large, successful companies, which creates a strong demand for new businesses and services. The city also has a high GDP per capita, which means a lot of disposable income is available to be spent. Also, the Norwegian government is very supportive of startups. Some government programs and initiatives offer startups financial assistance, mentoring, and networking opportunities.
