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The Two-Decades Divergence: Europe vs. Asia in Entrepreneurship and Growth

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Over the past twenty years, Europe’s economic growth has lagged conspicuously behind Asia’s. Many analysts and entrepreneurs point to differences in entrepreneurial activity as a key factor. Asia’s rise has been marked by a surge in startups, bold innovation, and rapidly expanding businesses, while Europe has often been seen as stagnating or “ex-growth.” This opinionated analysis will explore how entrepreneurship has influenced economic growth in both regions, examining trends in business creation, startup culture, access to funding, regulatory environments, and innovation ecosystems. We’ll look at the data, highlight major events since the mid-2000s, and discuss long-term structural differences – all with an entrepreneurial audience in mind.

Europe’s Slow Growth vs. Asia’s Economic Boom

First, consider the stark difference in economic trajectories. Asia has been the engine of global growth in recent decades, while Europe has grown at a much slower pace. For example, South Asia’s GDP grew over 5% annually and East Asia about 4.9% on average for the last forty years, whereas Europe (including Central Asia) managed only about 1.4% annual growth in the past decade​weforum.org​weforum.org. In fact, Asia accounted for 57% of global GDP growth between 2015 and 2021, reflecting how central the region has become to world economic expansion​mckinsey.com. Europe, meanwhile, has struggled with repeated slowdowns – from the 2008 financial crisis to the eurozone debt crisis and a stagnant 2010s – resulting in feeble growth. The EU’s own statistics agency recently noted “no economic growth in the last quarter of 2024” for the euro area​economist.com, underlining the chronic stagnation.

Why has Europe’s economy been so sluggish relative to Asia’s? Entrepreneurial dynamism – or lack thereof – is a critical piece of the puzzle. New businesses drive innovation, job creation, and productivity. Asia’s high-growth economies have seen an explosion of entrepreneurship that has in turn fueled economic development. Europe, by contrast, has experienced comparatively tepid startup activity, which many argue has contributed to its slower growth. To unpack this, let’s delve into how business creation, culture, funding, regulation, and innovation hubs differ between the two regions, and how those differences have played out over the past twenty years.

Business Creation: A Tale of Two Entrepreneurship Rates

One of the clearest contrasts is in business creation and early-stage entrepreneurship. Across Europe, people start new businesses at a significantly lower rate than in most other regions. According to the Global Entrepreneurship Monitor, European countries’ early-stage entrepreneurial activity (the share of adults starting or running a new business) is only about two-thirds the level in North America and merely one-third the level seen in many South American countries​gemconsortium.org. In other words, Europe consistently reports the lowest startup formation rates among global regions. Many large European economies have strikingly low startup rates – for instance, in 2022 only about 9% of adults in Germany and 6% in Spain were involved in early-stage businesses​gemconsortium.org. This trend reflects a long-term pattern: Europeans, on average, create fewer new ventures.

By contrast, Asia’s pace of business creation has been far more vigorous. Emerging Asian economies often have high entrepreneurship rates, partly driven by rapid development and growing populations. Even before the pandemic, places like Southeast Asia and India saw a boom in small enterprises and tech startups. China famously embraced a policy of “mass entrepreneurship and innovation” in the mid-2010s, leading to millions of new business registrations. While entrepreneurial activity varies across the vast Asian continent (Japan, for example, has low startup rates, whereas Vietnam or India rank much higher), the overall picture is that Asia has produced far more new businesses and startups in the last two decades than Europe, relative to population. This proliferation of new companies has provided a powerful engine for Asia’s economic growth.

Several factors underlie Europe’s slower business creation. One explanation is that Europe’s job markets are more comfortable – with strong employment protections and social safety nets, Europeans face a higher opportunity cost for leaving a stable job to start a risky business​gemconsortium.org. In fact, many Europeans channel their innovative energy into existing companies as employees (“intrapreneurship”) rather than founding startups. Meanwhile, in developing parts of Asia, entrepreneurship is often a more accessible path to upward mobility or even a necessity for livelihood, leading to a higher volume of small enterprises. Over the long term, this gap in new business formation means fewer new growth engines in Europe’s economy and, cumulatively, less dynamism.

Startup Culture: Caution in Europe vs. the Asian Hustle

Culture and mindset play an enormous role in entrepreneurship. Here, too, Europe and Asia have often diverged. Broadly speaking, European culture towards entrepreneurship has been more risk-averse and conservative, whereas many parts of Asia have cultivated a more aggressive, risk-taking startup culture. Surveys consistently show that fear of failure is a significant barrier for would-be entrepreneurs in Europe. Culturally, many Europeans have preferred safe careers in established firms or government, and societal attitudes have not always celebrated entrepreneurial risk. As one commentator put it, “In the EU, risk = disaster, not an opportunity”, reflecting a mindset that treats business failure as something to avoid at all costs​linkedin.com. This contrasts with the oft-cited Silicon Valley ethos of “fail fast, fail often,” which has been echoed in various Asian startup hubs.

In Asia, the startup culture has been marked by hunger and hustle, especially in fast-growing economies. China’s tech scene famously adopted the “996” work culture (9am to 9pm, 6 days a week) in its startup companies, exemplifying an intense drive to succeed (for better or worse). Across much of Asia, entrepreneurs have been seen as engines of national progress, and success stories like Alibaba, Tencent, Grab, and Flipkart have become sources of pride. There is also a generational effect: Asia’s youthful populations have been eager to innovate and take chances. In India, for example, a burgeoning middle class and young tech-savvy graduates in the 2010s led to a wave of startups in e-commerce, fintech, and software services. Where European entrepreneurs might be more cautious, Asian entrepreneurs often display a scrappier, “can-do” attitude – whether born of necessity or ambition – which propels them to tackle new markets and technologies rapidly.

That said, it’s important not to oversimplify. Europe’s startup culture has evolved in the last two decades. Today’s Europe is more entrepreneurial than it was 20 years ago – co-working spaces in Berlin, fintech meetups in London, and startup accelerators in Paris were rare in the early 2000s but are now common. Successes like Skype (started in Estonia), Spotify (Sweden), Adyen (Netherlands), and Klarna (Sweden) have given Europe homegrown role models. And after the global financial crisis of 2008-2010 left many young Europeans unemployed, a number turned to startups out of necessity, injecting fresh energy into the ecosystem. Still, despite this progress, Europe’s entrepreneurial culture remains comparatively subdued next to Asia’s fervor. A persistent stigma around failure and a preference for stability continue to dampen risk-taking in many European societies, which inevitably impacts the number of startups and their growth trajectory.

Access to Funding: Europe’s Capital Gap vs. Asian Investment Surge

Money is the lifeblood of new ventures, and here we find one of the most striking disparities. Venture capital and growth financing have been far more abundant in Asia than in Europe over the past 20 years. Consider the dramatic shift in global venture capital allocation: in 1997, Europe attracted about 10% of worldwide VC investment while Asia drew a paltry 3%. By 2023, the tables had turned – Asia-Pacific was drawing 28% of global venture capital, eclipsing Europe’s 19% share​voronoiapp.com (North America accounts for most of the rest). The infographic below illustrates how the venture capital landscape changed from 1997 to 2023, with Asia’s bubble expanding and Europe’s, while bigger than before, relatively overshadowed​voronoiapp.com:

https://www.voronoiapp.com/business/How-Asia-Become-a-Hotspot-for-Global-Investment-3083 Figure: How the global venture capital landscape has changed from 1997 to 2023, with Asia’s share (green) soaring to 28% and Europe’s (green) at 19%​voronoiapp.com. The U.S. & Canada (purple) saw their share drop but remain the largest. This surge in Asian VC reflects huge investment flows into startups in China, India, and beyond, while Europe’s venture scene, though improved, still trails.

The 2010s truly saw an Asian investment surge. China led the way – venture capital poured into Chinese tech startups, creating dozens of unicorns (startups valued over $1B) and backing giants like Didi, Meituan, and ByteDance. By the late 2010s, reports noted that China and the U.S. each were investing around $100 billion per year in VC, whereas Europe had invested less than $100 billion in total over five years​weforum.org. Beyond China, investors also flocked to India’s startup scene (think of SoftBank’s Vision Fund injecting capital into Indian companies), and to Southeast Asian startups in Indonesia, Singapore, and Vietnam. All this means that ambitious Asian founders generally found it easier to access sizable funding rounds, fueling faster growth.

Europe, for much of this period, faced a capital gap. Historically, European startups relied more on bank loans or public grants, with a relatively underdeveloped venture capital market. Despite having large pools of savings, Europe’s financial system has been conservative in channeling funds to high-risk, high-reward new companies. By the numbers, European venture capital investment as a share of GDP is only about one-quarter of that in the United States​imf.org. Fewer domestic VC firms and smaller fund sizes meant European entrepreneurs often struggled to raise growth capital, especially in the 2000s and early 2010s. Many had to look abroad for investors or scale more slowly. This has improved somewhat – by the 2020s, mega-rounds for European startups became more common – but the gap remains. In 2023, for instance, European startups raised around $52 billion, less than half of what U.S. startups did, and also well below Asia’s haul​linkedin.com. Fewer European companies reach “unicorn” status in large part due to this funding disparity.

The impact on growth is significant. Capital fuels expansion, hiring, and R&D. Europe’s relative shortage of risk capital has meant many of its startups stay small or sell early. Asia’s richer funding environment, conversely, has allowed its startups to aggressively scale into large, global players that contribute sizably to economic output. This dynamic helps explain why Europe has not produced tech giants on the scale of Alibaba or TikTok, and why Europe’s productivity and innovation have lagged. Without deep pools of growth capital, even Europe’s good ideas often don’t get translated into big businesses domestically. Bridging this funding gap is now a recognized priority in Europe, as leaders fret about being left behind in the innovation race.

Regulatory Environments: Red Tape vs. Red Carpet?

Regulation and government policy can make or break an entrepreneurship ecosystem. Entrepreneurs often complain that Europe presents a thicket of red tape, while many Asian governments have offered a more accommodating (even proactive) policy environment for startups. There is truth to this perception. Europe’s regulatory environment has traditionally been more stringent and complex for new businesses. It starts with the basics: in some European countries, simply registering a business or obtaining licenses can be a slow, bureaucratic ordeal. High taxes, especially on stock options and capital gains, have also drawn criticism. As one analysis pointed out, Europe has at times “overregulated its startup ecosystem, with high taxes on startup investments and difficulties for employees to own stocks”​weforum.org. These conditions can discourage angel investment and make it hard for startups to attract talent (since things like employee stock options – key in Silicon Valley – are less attractive under heavy taxation).

Additionally, Europe’s labor laws, while protecting workers, often make hiring and firing rigid. For a scrappy startup, the inability to pivot quickly with new talent or to shut down a failing project without exorbitant costs can be a significant barrier. Environmental, health, and safety regulations in Europe are also generally stricter – beneficial for society, but sometimes adding compliance burdens that young firms struggle with. And then there’s fragmentation: Europe may be a single market in theory, but differences in language, legal systems, and standards across countries create a fragmented domestic market. Trade within the EU is less fluid than, say, trade among U.S. states, meaning a European startup expanding from Germany to France encounters hurdles an American startup expanding from California to Texas would not​imf.org. This fragmentation limits the scale European startups can quickly achieve, as they must navigate 27 different regulatory regimes in the EU (not to mention non-EU countries).

In contrast, many Asian countries have taken a more “red carpet” approach – actively welcoming entrepreneurs and foreign investors. Over the past two decades, Singapore regularly topped global “Ease of Doing Business” rankings thanks to its simple rules and pro-business policies. Hong Kong and later Dubai (often considered in the Middle East but part of the broader Asia business landscape) similarly positioned themselves as startup-friendly hubs with low taxes and light regulation. China, during its boom, provided de facto regulatory freedom for tech firms – for many years, tech startups operated in a relatively unregulated space, which let them experiment and grow at breakneck speed. (Only recently did Chinese authorities step in with heavier regulation, after companies became too powerful.) Governments in South Korea and Taiwan poured money into innovation programs and loosened some regulations to foster sectors like biotech and semiconductors. Across Asia, there has often been a strategic directive to encourage entrepreneurship as a path to development, resulting in initiatives like startup investment funds, tax breaks for new firms, and special economic zones with relaxed rules.

Of course, Asia is diverse – not all countries are startup havens. Some have cumbersome regulations and corruption that hinder business. But the overall trend has seen major Asian economies liberalizing and supporting private enterprise to spur growth. Perhaps the starkest example is how Chinese policymakers allowed an internet and e-commerce industry to flourish with minimal interference in the 2000s, enabling companies like Alibaba and Tencent to become giants – a far cry from Europe’s cautious regulatory stance on data privacy, antitrust, and consumer protection which, while well-intentioned, may have inadvertently stifled domestic tech scale-ups. The balance between regulation and innovation is delicate: Europe has prioritized social values and risk mitigation, whereas Asia’s high-growth model leaned more toward risk-taking and “moving fast” – and the economic outcomes have reflected these choices.

Innovation Ecosystems: Hubs, Unicorns and Talent Clusters

When it comes to innovation ecosystems and tech hubs, Europe and Asia both boast some world-class centers – but Asia’s have grown larger and faster in recent years. A telling metric is the count of “unicorn” startups (valued over $1B) as a proxy for vibrant ecosystems. As of 2023, the Asia-Pacific region hosts 267 unicorns, compared to Europe’s 171​startupblink.com. This gap underscores Asia’s lead in building high-value companies. North America still leads by far (with over 600 unicorns, mostly in the U.S.), but Asia has firmly secured the second spot while Europe is in a distant third. Twenty years ago, Europe might have been closer to parity with Asia in this regard; now, Asia has leapt ahead, minting multi-billion-dollar startups at a pace Europe struggles to match.

A look at major startup hubs highlights the differences. In the early 2000s, Europe really didn’t have an equivalent to Silicon Valley – London was a financial center but not yet a tech hub, and places like Berlin or Stockholm were only beginning to nurture startups. Meanwhile in Asia around the same time, Bangalore was emerging as India’s tech capital and cities in China such as Beijing and Shenzhen were starting to teem with entrepreneurial activity. Fast forward to the 2020s: Beijing has over 50 unicorns and is a global innovation powerhouse (home to TikTok’s parent ByteDance, among others), surpassing any European city in producing high-valued startups​startupblink.com​startupblink.com. Bangalore, Shanghai, and Shenzhen each host dozens of cutting-edge tech firms, from AI to electric vehicles. Europe’s top city, London, has around 39 unicorns​startupblink.com – impressive, but still behind the leading Asian metropolises.

The innovation ecosystems in Asia have benefited from massive markets and concentrated talent. Take China: one language, one market of 1.4 billion people, and heavy government investment in STEM education produced a huge talent pool and an environment where a new app or platform could scale to hundreds of millions of users domestically. India likewise has a large English-speaking talent base and a huge internal market, giving startups room to grow (e.g., Flipkart scaled nationwide to compete with Amazon India). Europe’s population (about 750 million across the continent) is significant, but split into dozens of markets and languages, and many top engineers historically migrated to the U.S. for opportunities. That brain drain has started to reverse slightly – Europe’s quality of life and emerging hubs attract some talent – but the critical mass in Asian hubs has reached a different level. Moreover, Asia’s ecosystems have been heavily funded: consider that five of the top ten largest tech IPOs globally in 2020 were Chinese companies​weforum.org, reflecting how Asian startups were maturing into giant, publicly traded innovators, whereas Europe had virtually no representation in that upper echelon.

It’s not all bleak for Europe: the continent has excellent universities, a rich scientific research base, and it has cultivated specific niches (for instance, Estonia leads in digital governance tech, Finland in mobile gaming, Germany in industrial automation startups, etc.). European tech workers also tend to be more loyal, with lower turnover than the frenetic hiring wars of China or India, which can be a strength for building steady innovation. And interestingly, Europe excels in “hidden entrepreneurs” inside corporations – intrapreneurship – where established European firms have employees drive innovation internally​gemconsortium.org. This partially compensates for fewer standalone startups. However, when it comes to creating the next Google, Alibaba, or Tesla, Europe’s ecosystem so far hasn’t delivered – and that has meant less new productivity growth feeding into the broader economy. Asia’s innovation ecosystems, in contrast, have given birth to multiple tech sectors (from the smartphone manufacturing hubs of Shenzhen to the fintech sandboxes of Singapore) that have propelled national economies forward.

Structural Differences: Demographics and Beyond

Beyond these specific factors, there are bigger structural differences between Europe and Asia that have influenced entrepreneurship and growth. Demographics are a fundamental one. Europe’s population is aging and, in some countries, shrinking. With lower birth rates and many baby boomers retiring, Europe has a smaller proportion of youth – typically the most entrepreneurial age group – compared to two decades ago. Asia, on the whole, has been younger. In the 2000s and 2010s, countries like India, Indonesia, and the Philippines enjoyed demographic dividends with a high share of working-age people, which tends to correlate with higher entrepreneurship and consumption. (China is a bit of a special case: it had a huge young workforce in the 2000s, but due to its one-child policy it is now aging rapidly; however, during the high-growth period its demographics were favorable.) Younger societies tend to be more dynamic, willing to challenge the status quo, and hungry to build new things – exactly the conditions that spur entrepreneurship. Europe’s graying population may prefer stability and is less likely to start new ventures, contributing to the slower churn of businesses.

Another structural factor is the stage of development. Europe consists largely of advanced, high-income economies that had already industrialized by the late 20th century. Its slower growth in the last 20 years is partly a result of having less “catch-up” room – it’s harder to grow 7% a year when you’re already at the technological frontier and $40,000+ per capita income. Asia, by contrast, included many emerging economies in the early 2000s. Countries like China, India, and Vietnam were able to grow extremely fast by industrializing, urbanizing, and adopting technologies from abroad – a process that inherently involves a lot of new business formation. Millions moved from farms to cities and started small enterprises or found jobs in new companies. This structural catch-up growth fueled both GDP and high rates of entrepreneurship (often out of necessity or new opportunity). Europe simply did not have that kind of structural transformation underway; it was already a service-based, mature economy. Thus, part of Europe’s “lack of growth” is a natural result of being at a later stage of development. However, that doesn’t fully excuse the gap – the U.S. is also a mature economy yet has outpaced Europe, thanks in part to more robust entrepreneurship. So structural factors work in tandem with policy and culture.

Finally, consider capital and corporate structure. European economies are often dominated by long-established companies – many family-owned Mittelstand firms in Germany, or century-old corporations in France and the UK. These incumbents can sometimes crowd out new entrants. Asia certainly has conglomerates and incumbents too (e.g., Samsung in Korea, Tata in India), but the rapid growth created space for many newcomers to rise. Also, government role differs: Europe has strict state aid rules and relatively less direct state involvement in business, whereas some Asian governments have aggressively steered economic growth by championing certain industries (South Korea’s chaebol model or China’s state-guided capitalism). This can both help and hinder entrepreneurship – in China, state banks provided easy loans to startups for years, boosting entrepreneurship, although excessive state control can also stifle truly independent innovation. In Europe, the hands-off approach meant no special favors for startups, which, combined with market rigidity, may have made it harder for new companies to scale against entrenched players.

Major Events Shaping the Last 20 Years

To put everything in context, let’s briefly recap some major events since 2005 that influenced entrepreneurship in Europe and Asia:

  • 2000s Tech Boom and Bust: In the early 2000s, Europe was still reeling from the dot-com bust and had only a nascent startup scene. Asia, especially China, was just coming online (Alibaba was founded in 1999; by mid-2000s it was growing fast). The rise of the internet and mobile technology created new opportunities globally, but Europe initially lagged in capitalizing on them, while Asian entrepreneurs quickly jumped into areas like mobile gaming, SMS services, and cheap mobile handsets for huge markets.
  • Global Financial Crisis (2008-2009): This was a turning point. Europe was hit hard – economies contracted, traditional industries faltered, and unemployment spiked (notably youth unemployment). While devastating, it also prompted a mindset shift for some Europeans who, finding traditional careers unstable, considered entrepreneurship a viable path. However, the crisis also led to austerity in Europe, meaning less public funding for innovation and a slow recovery. Asia, on the other hand, rebounded faster: China’s government unleashed a massive stimulus which kept growth going, and Asian banks were less damaged. Thus, Asia’s rising middle class quickly resumed creating and consuming new tech (e.g., the smartphone revolution around 2010 saw Asian markets explode). Europe’s economy stagnated in the early 2010s (the eurozone had a double-dip recession in 2012) – tough times for startups to find customers or investors.
  • Eurozone Debt Crisis (2010-2012): Particularly in Southern Europe, this crisis entrenched economic stagnation. Many talented Europeans from countries like Greece, Spain, and Italy emigrated to find jobs, some going to the U.S. or London, draining entrepreneurial talent. Meanwhile, Asia experienced the 2010s as a period of expansion – China became the world’s second-largest economy, and startups there benefited from a huge domestic market going digital (the rise of WeChat, ride-hailing, etc.).
  • The Smartphone & Social Media Era (2010s): This era created platforms that entrepreneurs could leverage. Asia embraced mobile-first solutions rapidly – for instance, mobile payments became ubiquitous in China by late 2010s, enabling fintech startups to thrive. In contrast, Europe was slower to adopt some digital trends (contactless payments and super-apps arrived later). American and Asian tech firms often dominated these new platforms; Europe didn’t produce a social media giant or a leading smartphone brand. The result was that the tech ecosystem in Asia gained global influence, attracting even more capital and talent, while Europe remained a consumer of others’ innovations more than a creator.
  • COVID-19 Pandemic (2020-2021): The pandemic was a shock to both regions, but responses differed. European governments provided strong safety nets and tried to prop up small businesses with subsidies. Entrepreneurial activity initially dipped in Europe, though by 2022 some countries saw a bounce-back in new business formation as people rethought careers. Asia had a mixed experience: places like China had strict lockdowns (which hurt small businesses badly in 2020), but others like India and Southeast Asia saw a rapid digitalization during the pandemic (e-commerce and ed-tech boomed). The net effect is still unfolding, but the pandemic possibly pushed Europe to value self-reliance in tech (supply chain issues, etc.) and could spur more startups in areas like healthcare and deep tech. Asia’s startup ecosystems, meanwhile, proved resilient overall, with sectors like online services and electronics benefiting.
  • Geopolitical Shifts (2020s): Recent years have seen Europe facing new headwinds (Brexit uncertainty impacted UK-EU collaboration, the war in Ukraine in 2022 disrupted markets and energy costs) which indirectly affect entrepreneurship (higher energy costs hurt European industry, potentially diverting investment). Asia’s geopolitical landscape also shifted – U.S.-China tensions led to scrutiny on Chinese tech firms (e.g., export bans on chips, which might hinder innovation in the short run). Such events will influence how entrepreneurship drives growth in the next decade. But looking at the past 20 years in sum, Asia had a more conducive run of events for entrepreneurs – long stretches of high growth and rising consumer bases – whereas Europe dealt with repeated crises and low growth, an environment less fertile for bold entrepreneurial bets.

Conclusion: Bridging the Entrepreneurship Gap

Over the last twenty years, Asia has vividly demonstrated the power of entrepreneurship to drive economic growth, while Europe’s more cautious approach has coincided with economic stagnation. High rates of business creation, an energetic startup culture, ample funding, supportive policy, and dynamic innovation hubs have allowed Asian economies to surge ahead. Europe, in contrast, has often been described as having “Eurosclerosis” – a sluggish, risk-averse economic condition – reflected in fewer startups, less scale-up success, and chronic underperformance in the tech sector. The result: Europe’s influence in the global economy has diminished relative to Asia’s. As of the mid-2020s, Asia not only contributes a greater share of world GDP, but also hosts a greater share of the world’s entrepreneurial action – from the smallest street vendors to the mightiest tech unicorns.

However, the story is not one of inevitable decline for Europe. There are signs of change and reasons for optimism. European policymakers and business leaders increasingly recognize this entrepreneurship gap and its consequences. Initiatives are underway to cut red tape, unify markets, and unlock capital for startups. The European Union, for example, has discussed a “28th regime” to harmonize startup regulations across member countries​cepa.org, and programs like the European Innovation Council are funding high-risk tech projects. Culturally, entrepreneurship is more celebrated in Europe today than it was two decades ago – successful founders are becoming celebrities and mentors for the next generation. Moreover, Europe’s strengths – such as its educated workforce, strong institutions, and emphasis on sustainability – can be leveraged to carve out innovation leadership in fields like green technology, biotech, and advanced manufacturing, where patient long-term development (a European forte) is needed.

For Europe to close the gap with Asia (and the US), it will likely need to embrace a more entrepreneurial mindset at every level. This means not just creating startups, but allowing them to grow. Europe must make it easier for a small company to become a big company – something that requires deeper integration of its single market and a more venture-friendly financial system​imf.org​imf.org. It may also require learning from Asia’s playbook: for instance, Asian governments have often been unashamed about picking winners and investing heavily in innovation sectors, and Europe might consider more strategic investment in its tech industries​weforum.org. At the same time, Asia can learn from Europe in areas like balancing growth with social welfare and regulation – the goal is sustainable, inclusive growth, not just growth at any cost.

In conclusion, the past twenty years have provided a natural experiment in how entrepreneurship affects economic fortunes. Asia’s rise has been amplified by its embrace of entrepreneurship, while Europe’s relative decline has been compounded by its hesitation to fully empower entrepreneurs. Reigniting Europe’s economic engine will require unleashing the continent’s entrepreneurial potential – turning more of its bright ideas into thriving businesses. As an entrepreneur or investor looking at the global landscape, it’s clear that the next big opportunities could emerge anywhere. If Europe can foster the right conditions, it has every chance to produce the next wave of world-changing startups, and perhaps the narrative in the coming decades will be one of European resurgence alongside Asia’s continued ascent. What’s certain is that in the long run, no economy can afford to be complacent – the rewards of entrepreneurship await those who nurture it, and the past twenty years have taught us just how powerful that truth can be.

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