Insights from European entrepreneurs on starting a business

In many ways, small businesses are the backbone of Europe’s economy – driving innovation, creating jobs, and growing communities. Yet, the path to entrepreneurial success is not without its challenges. As an advocate for empowering small businesses and entrepreneurs with both cloud software and business expertise, we’re constantly striving to understand the needs of these communities. That’s why we, in collaboration with Kantar, conducted an extensive survey interviewing 2,000 small business owners and entrepreneurs across 12 of the 18 European markets Visma is present in. 

The survey focused on four regions to ensure a comprehensive analysis of entrepreneurship across Europe: 

• The Mediterranean (46% of respondents)
• Central Europe (24%)
• Benelux (16%)
• The Nordics (12%) 

These regions were carefully selected based on each area’s demographics, small business population, and Visma’s local presence. The results gave us a good insight into what motivates European entrepreneurs to start their own businesses, the challenges they face along the way, and the role that technology plays in all of this.

European entrepreneurs are full of dreams but face many uncertainties 

Starting a business means having to balance dreams with reality. It’s important to keep in mind that successful innovation is driven by execution and not just having a good idea. With passion, autonomy, and financial independence being key motivators, improving existing methods through better efficiency and management makes a real difference. 

Many successful companies enhance existing concepts with great operational efficiency, resource management, and market communication.

Viktor Stensson, Founder & CEO of Bokio

European entrepreneurs report challenges within promoting their business, financial management, and navigating regulations. The different challenges, and the weight of each challenge, varies from region to region. 

Challenges when starting a business, ranked from 1: Dark green (“Not at all challenging”) to 5: Red (“Very challenging”)

Marketing-related tasks were deemed challenging to varying degrees by 70% of the respondents. They report struggling with effectively getting the word out about their new business, and nearly as many (68%) find it hard to stand out from competing businesses.  Personal fears and understanding complex regulations were also flagged by 64% of respondents. In contrast, challenges related to team management and administrative tasks received less attention. 

There were some clear regional differences in the perception of these challenges – especially financing new ventures –  which puts the unique hurdles that entrepreneurs face across Europe into perspective. Notably, entrepreneurs in the Mediterranean find it more difficult to finance new ventures compared to those in other areas. Personal challenges and fears generally seem quite common, but Nordic entrepreneurs reported the lowest levels of fear when starting a new venture. On the other hand, competition is considered a notable challenge but its impact varies. It stands out as a bigger concern in the Mediterranean and Benelux regions, but less so in the Nordics and in Central Europe, where marketing and personal fears take precedence.

The regional differences between Central Europe, the Nordics, Benelux, and the Mediterranean region in terms of defining challenges

Managing local regulations while starting a new business

The survey data indicates that, overall, navigating business regulations in Europe presents a unique set of challenges, but entrepreneurs don’t consider it the most difficult task. Most respondents rated understanding and complying with various rules as a moderate challenge. On a scale from 1–10, where 1 means “not hard at all” and 10 means “very hard”, 27% of respondents rated the perceived difficulty of navigating regulations as 8 or higher. Specifically, 17% ranked it as 8, while 5% each ranked it a 9 or 10. On the other end of the spectrum, 19% of respondents rated the difficulty level between 1–3.

While “understanding rules and laws for businesses” ranked 4th among the listed challenges, managing local regulations is still considered a significant hurdle in the process of starting a new business.

The perceived level of difficulty (on a scale of 1–10) in terms of managing regulatory requirements

The survey did highlight regional differences in managing regulatory requirements for new businesses, as well. Building on the chart above, we separated responses by region, with a colour gradient from green to red to represent perceived difficulty.

Regional differences in perceived level of difficulty in terms of managing regulatory requirements

Dark green indicates the percentage who found managing local regulations “not hard at all”, while red represents those who found it “very hard”. Intermediate colours – light green, yellow, and orange – represent increasing levels of difficulty. The results showed that 55% of entrepreneurs in the Mediterranean region perceive regulatory hurdles as challenging, whereas 41% of Central Europeans find them manageable.

The main motivations for starting a business

The survey revealed that most European entrepreneurs start businesses for the following top three reasons:

1. Pursuing a passion
2. Greater work autonomy
3. Higher earnings/financial independence

In contrast, fewer Europeans are driven by opportunism or family influence, but motivations vary by region. In Benelux, 18% prioritise financial independence, while 22% of entrepreneurs from the Mediterranean and Nordic regions name passion as their main reason. Central Europe shows a more balanced split, with 16% equally valuing passion and financial independence. Overall, a total of 45% of respondents highlight passion, autonomy, and financial independence as their main motivations for starting a business.

The highest ranked motivations for starting a business in Europe

Effective execution consistently outperforms wild innovation

When it comes to achieving success with a new venture, effective execution proves to outperform wild innovation. As can be expected, entrepreneurs face numerous challenges and responsibilities when starting a new business. In the early years of a start-up, many struggle to stay afloat, often losing focus and getting caught up in the details, which can detract from overall strategy and profitability. That’s where technology can step in, to simplify the process of launching new businesses. It helps entrepreneurs navigate the challenging early stages and build a solid foundation – not only for running the business smoothly but also for future growth.

Construction, health care, education, creative services – most of them fulfil a need that has been around for quite a while. Execution is actually where the biggest impact is made. You have to pay attention to customers’ needs and make sure they are happy and satisfied with your service. Innovation offers advantages, but its benefits are limited without skilled execution, especially in sectors that focus on meeting established needs.

Niels Olthuis, Managing Director of Rompslomp