Lithuania has the highest enterprise birth rate in Europe
- 12Shares
Lithuania and Latvia perform the best in Europe when it comes to the enterprise birth rate.
The creation of new businesses is the core indicator of a country’s economic growth and entrepreneurial potential. Country’s entrepreneurial spirit can be revealed by the enterprise birth rate that measures new enterprises as a proportion of all active enterprises.
According to Eurostat, Lithuania records the highest enterprise birth rate in Europe: 18.82%. Latvia takes the second place with the rate of 16%, followed by Portugal (15.6%), UK (15%), and Iceland (14.4%).
On average, the enterprise birth rate in EU is around 10%, according to 2016 data. In contrast, despite being dynamic economies, Germany and Belgium perform poorly with the enterprise birth rate of 6.7% and 6.2%, respectively.
The Europe’s lowest rate is recorded in Greece where new enterprises account only for 4.5% of all active companies.
According to Eurostat, enterprise births are thought to increase the competitiveness of a country’s business, by obliging companies to become more efficient in view of newly emerging competition. They stimulate innovation and facilitate adoption of new technologies, while helping to increase overall productivity within an economy.
- 12Shares
Pingback: Female CEO's: too few women lead the largest companies