Germany the Outlier as Europe Sees Highest High-Growth Firms in Five Years

The number of EU firms hitting over 20% growth is now at a five-year peak, equalling over 5% of all businesses, finds the 2025 European Scaleup Monitor report.

High-Growth Firms were one of 8 categories the report organised over 2.1 million business entities into, to gain a clear up‑to‑date picture of where, how and why companies in Europe are growing at high rates.

The Nordic countries (Finland, Denmark, Sweden), plus Ireland, the Netherlands, Italy, Spain and Portugal, consistently rank among the top performers in almost every category.

Categories were based on their employee growth rates and consistency over a three-year period, and range from ‘Scalers’ showing steady annual growth, to ‘Consistent Hypergrowers’ (firms achieving exceptional growth repeatedly) alongside age-based distinctions such as younger ‘Gazelles’ and more established ‘Superstars’.

Ireland and Spain have the largest increases in scalers between 2022 and 2023.

The Baltic states (Latvia and Lithuania) and Slovenia are fast becoming hubs for younger ventures, with a rapid rise in Gazelle firms, or entities that are younger than 10 years old, suggesting they may hold many of Europe’s future unicorns.

Germany, Bulgaria and Malta bucked the overall positive trend, each recording a slight decline in the share of scalers compared with 2022, with Germany’s contraction the steepest among the EU27.

Despite this, the overall picture tells a story of strong resurgence in post-Covid growth, with many metrics now exceeding pre-pandemic levels. “The latest findings show that Europe’s scaleup ecosystem is bouncing back stronger than ever, but growth is far from uniform. While some regions are driving remarkable momentum, others lag behind,” adds Veroniek Collewaert, Professor of Entrepreneurship at Vlerick Business School.

“The real challenge for policymakers is not only to sustain this growth but to ensure it spreads more evenly. That means identifying what works in the high‑performing regions, fostering the right conditions for young and established firms alike, and creating a shared roadmap so that Europe can turn isolated successes into a lasting, continent‑wide engine of innovation and economic resilience."

Additionally, the report showed that service sectors, especially Information & Communication and Administrative & Support Services, dominate in high-growth activity. Meanwhile, Accommodation & Food Services, hard hit by COVID-19, posted the largest year-on-year recovery, continuing their recovery path started last year, rebounding more than 12% and exceeding pre-pandemic growth levels.

The report suggests that policymakers should leverage regional data to identify best practices, focus on emerging ecosystems in Eastern Europe, and address declines in Germany, Bulgaria, and Malta with tailored policies.

Partners of the European Scaleup Institute include Vlerick Business School, ESSEC Business School, Erasmus University Rotterdam, WHU Otto-Beisheim School of Management, ESADE Business School, NOVA School of Business and Economics, Luiss Business School and the University of Galway.

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For more information or to speak with the researchers, please contact Alex Lopez at alex@bluesky-pr.com or on +44 (0)1582 797959.