Structural business statistics at regional level

Data extracted in March 2024.

Planned article update: September 2025.

Highlights

Financial and insurance activities accounted for 12.2% of the total number of people employed in Luxembourg’s business economy in 2021; this was almost 4 times as high as the EU average (3.1%).

The EU’s enterprise birth rate was 10.70% in 2021; some of the highest rates among EU regions were recorded in the capital regions of Lithuania, France and Portugal – Sostinės regionas (20.37%), Ile-de-France (18.09%) and Área Metropolitana de Lisboa (16.60%).

Source: Eurostat (sbs_r_nuts2021) and (sbs_sc_ovw)

The EU’s business and industrial policy is designed to

strengthen its industrial base
stimulate an entrepreneurial culture and job creation
promote the transition to a zero-carbon economy
reduce red tape and help small businesses to do business
support innovative enterprises
open-up external markets by developing trade agreements
prevent unfair competition.

The EU’s industrial strategy was updated in the aftermath of the COVID-19 crisis – Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery (COM(2021) 350 final) – with actions designed to assist in the transition towards a green, digital and resilient economy. The crisis illustrated the need for a more robust industrial model, as businesses suffered from disruptions to global supply chains. It also highlights a need to address strategic dependencies – both technological and industrial – across a broad range of activities, such as those concerning energy, raw materials, semiconductors, pharmaceuticals and other health-related products.

Presented according to the activity classification NACE, the 1st part of this chapter is based on a selection of regional business demography statistics. Indicators from this dataset include enterprise birth and death rates, as well as the share of high-growth enterprises. The 2nd half of the chapter presents structural business statistics for the business economy, manufacturing and market services. These statistics provide valuable information about regional patterns of specialisation and concentration.

Regulation (EU) 2019/2152 on European business statistics lays the groundwork for a number of developments in this domain, such as a broader coverage of service activities. This is the 1st edition of the Eurostat regional yearbook to make use of statistics collected under this revised legal basis. Financial and insurance activities are among the services activities now included in structural business statistics as a result of these recent changes. In 2021, financial and insurance activities accounted for 3.1% of the total number of people employed within the EU’s business economy. The infographic above shows that Luxembourg had the highest regional share for these services, at 12.2% (almost 4 times as high as the EU average).

Business demography

Business demography statistics provide information about the events in the life cycle of an enterprise. They cover, among others

the birth (and other creations) of new enterprises
the growth and survival of existing enterprises (with particular interest centred on their employment impact)
enterprise deaths (and other cessations).

These indicators provide an important insight into business dynamics, as new enterprises / fast-growing enterprises tend to be innovators that may improve the overall level of efficiency and productivity of an economy.

More about the data: business demography statistics

Business demography statistics are presented for the whole of the business economy – defined here as NACE Sections B to N and P to R and Divisions 95 and 96 – covering industry, construction, distributive trades and other market services.

High-growth enterprises are of particular interest to policymakers insofar as they can improve the economic performance of a region, create employment opportunities and, if sustained, change its economic structure. A high-growth enterprise is an enterprise that grows at a rapid pace when measured in terms of its number of employees. In this publication, these enterprises are specifically defined as those with

at least 10 employees in 2018
and average employee growth of more than 10% per year between 2018 and 2021.

This indicator should be examined with caution as it fails to capture potential downsides, insofar as high-growth enterprises may displace incumbents and/or disrupt markets, possibly lowering overall economic performance.

Enterprise births and deaths

The EU’s enterprise birth rate was 10.70% in 2021

The enterprise birth rate measures the number of new enterprises born during a year in relation to the total population of active enterprises in the same year. In 2021, there were 3.4 million enterprise births within the EU’s business economy. When expressed relative to the total number of enterprises (31.5 million), this equated to an enterprise birth rate of 10.70%.

In 2021, the regional distribution of enterprise birth rates for the business economy was relatively skewed insofar 37.5% of NUTS level 2 regions (87 out of 232) reported a rate that was equal to or above the EU average, while the remaining 62.5% of regions had rates below the average. Map 1 shows that enterprise birth rates were relatively homogeneous in some EU countries, highlighting that the underlying national business environment, administrative, macro- and socioeconomic conditions likely have an important impact. For example, every NUTS level 2 region of France, Lithuania and Portugal had an enterprise birth rate of at least 12.00%; similarly high rates were also recorded in Latvia and Malta.

By contrast, there were other EU countries where enterprise birth rates for the business economy were relatively heterogenous. These were usually characterised by higher enterprise birth rates in predominantly urban regions, particularly in and around capital cities. High rates of enterprise creation may reflect, among other factors, the presence of an innovative environment, research clusters, technology hubs, easier access to markets, modern infrastructure, or the concentration of skilled labour. For example, the highest enterprise birth rates in 2021 in Bulgaria, Denmark, Germany, Ireland, Greece, Poland, Romania and Finland were recorded in their capital regions.

In 2021, there were 23 NUTS level 2 regions where the enterprise birth rate for the business economy was at least 15.00% (as shown by the darkest shade of blue in Map 1). These 23 regions were concentrated in France (19 regions), with the highest rates recorded in the French outermost regions – Mayotte (43.24%) had the highest rate in the EU. Within metropolitan/mainland France, the capital region of Ile-de-France (18.09%) and Nord-Pas de Calais (16.80%) registered the highest rates. Outside of France, the remaining 4 regions with enterprise birth rates of at least 15.00% included both regions in Lithuania and 2 regions from Portugal. In each case, the capital region posted the highest rate – Sostinės regionas (20.37%) and Área Metropolitana de Lisboa (16.60%).

Rural and less economically developed regions are often characterised by lower enterprise birth rates. This may reflect, among other factors, structural challenges, cultural attitudes towards risk-taking and entrepreneurship, as well as limited access to capital or skilled labour that impacts entrepreneurial activity. There were 18 NUTS level 2 regions where the enterprise birth rate for the business economy was below 6.00% in 2021 (they are shown with a yellow shade in Map 1). These 18 regions were concentrated in Germany (6 regions), Austria and Greece (both 5 regions). The lowest rates in each of these 3 countries were registered in Chemnitz (4.65%), Salzburg (5.38%) and Voreio Aigaio (5.79%). The other 2 regions with rates less than 6.00% were Estonia – which had the lowest rate (3.06%) in the EU – and the Italian region of Provincia Autonoma di Bolzano/Bozen (5.81%).

Map 1: Enterprise birth rate, 2021
(% of active enterprises in the business economy, by NUTS 2 regions)
Source: Eurostat (bd_hgnace_r) and (bd_l_form)

The EU’s enterprise death rate was 8.48% in 2021

There were 2.7 million enterprises that definitively ceased activity within the EU’s business economy in 2021; expressed relative to the total enterprise population, this equated to an enterprise death rate of 8.48%. Enterprise death rates for the business economy tended to be within a relatively narrow range across most EU countries. There was generally less variation in enterprise death rates between different regions of the same country than was the case for enterprise birth rates. Nevertheless, it was relatively common for regions with high enterprise birth rates to also record high enterprise death rates. This isn’t surprising, as dynamic and innovative enterprises entering a market may be in a position to drive less productive incumbents out of the market (‘creative destruction’).

In 2021, the highest enterprise death rates were concentrated across the business economies of Bulgaria, Estonia, Lithuania and Poland. Every NUTS level 2 region of Bulgaria, Estonia and Lithuania had a rate of at least 13.50% (as shown by the darkest shade of blue in Map 2). This group also included 11 out of the 17 regions in Poland, as well as the French outermost region of Mayotte. At the top end of the distribution, the highest rates were observed in Estonia (23.35%), while the only other regions with rates above 20.00% were the 2 Lithuanian regions.

The distribution of enterprise death rates for the business economy was somewhat skewed, insofar as a majority of the NUTS level 2 regions (133 out of 232, equivalent to 57.3%) reported rates below the EU average. In 2021, there were 16 regions across the EU where rates were less than 4.00% (they are shown with a yellow shade in Map 2). This group included Belgium (only national data available) and the Dutch regions of Friesland and Gelderland. However, the 13 lowest enterprise death rates in the EU were all located in Greece, with the lowest values registered in the island regions of Kriti (1.65%) and Notio Aigaio (1.64%).

Map 2: Enterprise death rate, 2021
(% of active enterprises in the business economy, by NUTS 2 regions)
Source: Eurostat (bd_hgnace_r) and (bd_l_form)

High-growth enterprises

In 2021, high-growth enterprises accounted for approximately 1 out of every 11 enterprises

There were 151 300 high-growth enterprises across the EU in 2021 (see the shaded box above for a definition). High-growth enterprises accounted for 9.18% of the total number of active enterprises with at least 10 employees in the EU’s business economy. There was a relatively even distribution of high-growth enterprises among NUTS level 2 regions: 119 out of the 232 regions for which data are available (or 51.3%) recorded shares that were equal to or above the EU average; while 113 regions (48.7%) had shares below the average.

In 2021, the capital regions of Bulgaria, Czechia, Germany, Ireland, Croatia, Lithuania, Hungary, Poland, Portugal, Romania, Slovakia and Finland recorded the highest shares of high-growth enterprises on their national territories. This bias towards capital regions might reflect, among other factors, the availability of capital for business start-ups, highly qualified people to staff rapidly growing enterprises, and a critical mass of potential business and/or household clients.

The existence of high-growth enterprises reflects, at least in part, the business enterprise structure of each region. It is generally easier for a relatively small enterprise (compared with a relatively large enterprise) to grow at a rapid pace; this pattern is often referred to as the ‘catch-up’ process. The darkest shade of blue in Map 3 shows those NUTS level 2 regions where high-growth enterprises accounted for 13.00% or more of all active enterprises in 2021. Mayotte (an outermost region of France) had the highest regional share in the EU, at 21.88%. However, the other regions above this threshold were concentrated in Nordic and southern EU countries

4 out of 5 regions in Denmark, 3 out of 5 regions in Finland, and all 8 regions of Sweden
10 out of 13 regions in Greece, and Malta.

In 2021, there were 23 NUTS level 2 regions in the EU where the share of high-growth enterprises was less than 6.00%. This group was composed of 16 regions from France, 3 from Italy, Belgium (only national data available), single regions from Germany and Spain, as well as Cyprus. The lowest share of high-growth enterprises was recorded in Cyprus (1.67%), while the 12 next lowest shares were all located in France (ranging from 4.52% to 5.60%).

Map 3: High-growth enterprises, 2021
(%, share of total number of enterprises in the business economy measured in employment terms, by NUTS 2 regions)
Source: Eurostat (bd_hgnace_r) and (bd_hg)

Regional patterns of employment specialisation and concentration in the business economy

Map 4 is split into 4 parts and shows the relative importance of industry (defined as NACE Sections B to E), construction (NACE Section F), distributive trades (NACE Section G) and other market services (NACE Sections H to N and P to R, and Divisions 95 and 96). These 4 maps use the same legend / class boundaries to make them easier to compare and help identify regional patterns of specialisation and concentration. In 2021, there were 156.1 million people employed in the EU’s business economy. More than half (51.4%) of the EU’s workforce was employed in other market services, with industry (21.1%) and distributive trades (18.9%) both accounting for close to a fifth of the total; construction had a much lower share (8.6%).

More about the data: structural business statistics

Structural business statistics are available at a very detailed sectoral level (several hundred economic activities), by enterprise size class (for micro, small, medium and large-sized enterprises) or, as here, by region. They provide data covering issues such as labour input, value added, productivity, profitability and investment. This information can be used to explore (among other issues) structural shifts in an economy, national or regional specialisations, and sectoral patterns.

The consolidation of European business statistics took a step forward with the adoption of Regulation (EU) 2019/2152 in November 2019. It creates a cross-cutting legal framework for the collection, compilation, transmission and dissemination of statistics, covering the economic activities of market producers within the business economy (as defined by NACE Rev. 2 Sections B to N, P to R and Divisions 95 and 96).

There were 33.0 million people employed in 2021 within the EU’s industrial sector, equivalent to 21.1% of the business economy workforce. Across NUTS level 1 regions, the 13 highest regional shares were all registered in eastern EU countries, namely, Bulgaria, Czechia, Hungary, Poland, Romania, Slovenia and Slovakia. The relative importance of industry in terms of its contribution to business economy employment peaked in 2 Romanian regions – Macroregiunea Patru and Macroregiunea Unu (37.7% and 36.7%, respectively) – while Dunántúl in Hungary (36.2%) had the 3rd highest share. At the other end of the range, there were 11 regions where industrial activities accounted for a single-digit share of the business economy workforce. This group was composed primarily of capital regions and/or regions that are well-known tourist destinations. The lowest share was observed in the Greek island region of Nisia Aigaiou, Kriti (0.9%).

In 2021, there were 13.4 million people employed in the EU’s construction sector (defined as NACE Section F); this equated to 8.6% of the business economy workforce. Across NUTS level 1 regions, the highest regional share was recorded in the island region of Corse (France), where construction accounted for 16.7% of the business economy workforce. The Swedish region of Norra Sverige (14.0%), Luxembourg (13.7%) and the Portuguese Região Autónoma da Madeira (13.3%) recorded the next highest shares. By contrast, the contribution of construction to the business economy workforce was relatively low in several predominantly urban regions. The lowest shares were registered in the Greek capital region of Attiki (where 4.7% of the business economy workforce was employed within the construction sector) and the northern German regions of Bremen (4.4%) and Hamburg (4.0%).

There were 29.5 million people employed in the EU’s distributive trades sector in 2021; this represented 18.9% of the business economy total. Distributive trades accounted for a relatively high share of business economy employment in several NUTS level 1 regions across Greece. More than 25.0% of the business economy workforce was employed within distributive trades in: Kentriki Elláda (28.0%); Nisia Aigaiou, Kriti (27.3%); the capital region of Attiki (26.7%); and Voreia Elláda (26.3%).

In 2021, there were 80.2 million people in the EU employed in other market services: this equated to a 51.4% share of the business economy workforce. An analysis by NUTS level 1 region shows that employment within other market services was particularly concentrated in predominantly urban regions, especially in capital regions. The highest share was recorded in the Belgian Région de Bruxelles-Capitale/Brussels Hoofdstedelijk Gewest, where 73.0% of people employed within the business economy worked in other market services. The 2nd highest share was recorded in the German capital region of Berlin (72.0%), while 3 other capital regions – those of West-Nederland (the Netherlands), Comunidad de Madrid (Spain) and Ile-de-France (France) – also featured among the 10 regions with the highest shares.

Map 4: Employment in the business economy, 2021 (%, share of business economy employment, by NUTS 1 regions)
Source: Eurostat (sbs_r_nuts2021) and (sbs_sc_ovw)

Regional patterns of employment specialisation and concentration in manufacturing

The EU’s manufacturing base has migrated eastwards

Manufacturing (NACE Section C) produces goods and provides industrial services. These may be for domestic use (investment, further processing or consumption) and/or for export. Manufacturing has traditionally been considered a cornerstone of economic prosperity within the EU. However, over several decades this sector has experienced wide-ranging transformations, through outsourcing, globalisation, changes to business paradigms (such as just-in-time manufacturing), the growing importance of digital technologies, or concerns linked to sustainable production and the environment.

There has been an eastward shift in the EU’s manufacturing base during the last 2 to 3 decades, reflecting, among other factors, differences in: labour costs; taxes and subsidies; flows of foreign direct investment (FDI) and the presence of multinational enterprises; natural resource endowments; environmental standards. Eastern EU countries have been increasingly used as manufacturing bases by enterprises from other EU countries (in particular neighbouring countries such as Germany) and by enterprises from non-EU countries that would like to establish a manufacturing base within the EU’s single market. These enterprises often form an integral part of international supply chains, with relatively highly skilled workforces.

In 2021, manufacturing employed 19.0% of the EU’s business economy workforce. The 3 largest manufacturing subsectors in the EU – in employment terms and as defined by NACE divisions – were the manufacture of food products (2.7% of the business economy total), the manufacture of fabricated metal products, except machinery and equipment (2.3%), and the manufacture of machinery and equipment not elsewhere classified (1.9%). There were only 3 other manufacturing subsectors which accounted for at least 1.0% of the EU’s business economy workforce: the manufacture of motor vehicles, trailers and semi-trailers (1.6%), the manufacture of rubber and plastic products (1.1%) and the manufacture of electrical equipment (1.0%).

Figure 1 shows information for 24 different manufacturing activities (as defined by NACE divisions). The bars show the number of people employed in a specific manufacturing activity as a share of the non-financial business economy workforce, with the right- and left-hand ends of each bar providing information on the regions with the highest/lowest regional shares; the point where the blue and green parts of each bar meet indicates the EU average. For example, in the Greek region of Ipeiros, the manufacture of food products employed 9.0% of the business economy workforce in 2021; this was 3.3 times as high as the EU average (2.7%).

Primary processing activities are often located close to the source of raw materials

Figure 1 also shows that the distribution of employment across the various manufacturing divisions was often highly skewed. In some manufacturing activities, particularly high levels of employment were concentrated in just a handful of regions.

Activities that involve primary processing were often located close to the source of their raw materials. This was the case for the manufacture of food products, as there were 5 agricultural regions where the manufacture of food products accounted for at least 7.5% of employment within the business economy in 2021, Ipeiros – as mentioned above – and Thessalia (both in Greece), Bretagne in France, Dél-Alföld in Hungary, and Mazowiecki regionalny in Poland. La Rioja in Spain (2.9%), Champagne-Ardenne in France (2.1%), Alentejo in Portugal (1.7%) and Trier in Germany (1.6%) had the highest employment shares for the manufacturing of beverages (NACE Division 11). Regions specialised in the manufacture of textiles (NACE Division 13) were often located close to an abundant supply of water; Norte in Portugal (2.7%) had the highest regional share in the EU. The Croatian region of Panonska Hrvatska had the highest employment share (4.4%) for the manufacture of wood and wood products, except furniture (NACE Division 16), while Mellersta Norrland in Sweden had the highest employment share (3.7%) for the manufacture of paper and paper products (NACE Division 17).

German regions often specialise in export-orientated subsectors

Germany exports a high proportion of its manufacturing output; this is particularly the case for its motor vehicles, electrical, engineering and chemical subsectors. In 2021 and among NUTS level 2 regions of the EU

Braunschweig in northern Germany had the highest employment share (13.8%) for the manufacture of motor vehicles, trailers and semi-trailers (NACE Division 29)
Stuttgart in south-west Germany had the highest employment share (7.7%) for the manufacture of machinery and equipment not elsewhere classified (NACE Division 28)
Rheinhessen-Pfalz in western Germany had the highest employment share (5.5%) for the manufacture of chemicals and chemical products (NACE Division 20).

The manufacture of transport equipment is characterised by clusters of economic activity

The manufacture of transport equipment in the EU is characterised by clusters of economic activity and highly integrated production chains. Over time, some production has moved abroad, to exploit efficiency gains in global value chains. For example, this process has seen a redeployment of production towards several eastern EU countries.

In 2021, aside from Braunschweig in Germany (mentioned above), the highest degrees of employment specialisation for the manufacture of motor vehicles, trailers and semi-trailers were recorded in the Romanian region of Vest (with an 11.6% share of business economy employment), Střední Čechy in Czechia (10.7%) and the westernmost Hungarian region of Nyugat-Dunántúl (9.9%). The French region of Midi-Pyrénées was the most specialised region in the EU for the manufacture of other transport equipment (NACE Division 30), as these activities provided employment to 3.6% of its business economy workforce, with a significant presence in the aerospace sector.

Figure 1: Regional specialisation among manufacturing activities, 2021
(%, share of business economy employment, by NUTS 2 regions)
Source: Eurostat (sbs_r_nuts2021) and (sbs_sc_ovw)

Regional patterns of employment specialisation and concentration in market services

Market services (defined here as NACE Sections G to N, P to R and Divisions 95 and 96) provided work to 109.7 million people across the EU in 2021; this equated to 70.3% of the total number of people employed in the business economy.

In 2021, there were 10 NUTS level 2 regions across the EU where the contribution of market services to the business economy workforce was higher than 85.0%. This group included

the capital regions of Région de Bruxelles-Capitale/Brussels Hoofdstedelijk Gewest (Belgium), Berlin (Germany), Noord-Holland (the Netherlands) and Área Metropolitana de Lisboa (Portugal)
the popular holiday destinations of Voreio Aigaio, Notio Aigaio and Ionia Nisia (all in Greece)
and 3 more regions within the Netherlands – Groningen, Utrecht and Zuid-Holland.

At the other end of the range, there were 10 NUTS level 2 regions in the EU where market services provided employment to less than 50.0% of the business economy workforce in 2021. They were concentrated in eastern EU countries: 4 from Czechia, 2 from Croatia, and a single region from each of Poland, Romania, Slovenia and Slovakia. The lowest share (45.3%) was recorded in the northern Czech region of Severovýchod, which is characterised by heavy industry.

Some market service activities are commonly spread across the EU territory, whereas others are concentrated within close proximity to a mass of potential clients

Figure 2 provides information for 43 different market service activities, presenting those NUTS level 2 regions with the highest degree of employment specialisation (based on regional shares for each activity in the business economy workforce). Some of the variations in employment specialisation may reflect, among other issues, access to skilled employees, the adequate provision of infrastructure, climatic and geographic conditions, proximity to a critical mass of customers, access to markets or legislative constraints.

Retail trade (NACE Division 47) accounted for 10.5% of the EU’s business economy workforce in 2021. This was followed by wholesale trade (NACE Division 46) with a 6.1% share, human health activities (NACE Division 86) with a 5.2% share, and food and beverage service activities (NACE Division 56) with 4.9%. These are all examples of service activities that are ubiquitously found in every NUTS level 2 region of the EU.

Capital regions were among some of the most specialised regions for a range of service activities that rely on the close proximity of a large number of potential clients (be these other businesses, households or governments). For example, in 2021

the Área Metropolitana de Lisboa (Portugal) had the highest employment share for office administrative/support and other business support activities (8.4%)
Yugozapaden (Bulgaria) for computer programming, consultancy and related activities (7.7%)
Bruxelles-Capitale/Brussels Hoofdstedelijk (Belgium) for the activities of head offices and management consultancy activities (6.4%) and insurance and pension funding, except social security (3.2%)
Comunidad de Madrid for activities auxiliary to financial services and insurance activities (4.6%)
Bratislavský kraj (Slovakia) for legal and accounting activities (4.5%) and for telecommunications (2.1%)
Praha (Czechia) for other professional, scientific and technical activities (2.4%)
Warszawski stołeczny (Poland) for advertising and market research (2.2%).

Figure 2: Regional specialisation among market service activities, 2021
(%, share of business economy employment, by NUTS 2 regions)
Source: Eurostat (sbs_r_nuts2021) and (sbs_sc_ovw)

One of the most significant changes resulting from the introduction of a new legal basis for structural business statistics in the EU is an expansion in activity coverage to encompass a broader range of services. Map 5 presents information for 4 selected service activities, 2 of which are among the newly covered activities. The map highlights regional patterns of specialisation and concentration.

There were 16.3 million people employed in the EU’s retail trade sector in 2021; as such, it accounted for just over a tenth (10.5%) of the EU’s business economy workforce. In absolute terms, the highest numbers of people employed in retail trade – across NUTS level 2 regions – were registered in the French capital region of Ile-de-France (394 600), Lombardia in northern Italy (315 100), and the Spanish regions of Cataluña and Andalucía (294 200 and 289 800, respectively). In relative terms, there were 21 regions in the EU where the retail trade sector accounted for at least 15.0% of the business economy workforce. This group (as shown by the darkest shade of blue in the 1st part of Map 5) was principally composed of remote, predominantly rural and island regions, although it also included the Greek capital region of Attiki.

Administrative and support services (NACE Section N) provide assistance to general business operations, for example, through the provision of rental and leasing activities, employment activities, or office support. In 2021, these activities provided employment to 13.6 million people across the EU (8.7% of the business economy total). The French capital region of Ile-de-France had the highest number of people employed in the administrative and support services sector (572 700). There were 5 other NUTS level 2 regions in the EU with more than 250 000 people employed: the capital regions of Comunidad de Madrid (Spain) and Área Metropolitana de Lisboa (Portugal), Lombardia (Italy), Cataluña (also in Spain) and Düsseldorf (Germany). In relative terms, administrative and support services accounted for 19.0% of the business economy workforce in the Portuguese capital region – the highest share in the EU. By contrast, administrative and support services accounted for no more than 2.0% of the business economy workforce in 4 mainland regions of Greece.

In 2021, there were 13.1 million people employed across the EU in human health and social work activities (NACE Section Q); this equated to 8.4% of the business economy total. In absolute terms, the highest numbers of people employed in human health and social work activities were observed in 2 neighbouring regions in Germany – Düsseldorf and Köln (360 300 and 303 500, respectively) – and in the Dutch region of Zuid-Holland (314 600). The regional distribution of employment in human health and social work activities was heavily skewed, insofar as 72 out of 240 NUTS level 2 regions had shares that were equal to or above the EU average, compared with 168 regions that recorded lower than average shares. At the top end of the distribution, there were 35 regions where human health and social work activities provided work to at least 15.0% of the business economy workforce (as shown by the darkest shade of blue in the map). These regions were concentrated in 3 western EU countries: 17 regions in Germany, all 12 regions of the Netherlands, and 6 regions from Belgium. The northern Dutch region of Groningen had the highest regional share, as 26.9% of its business economy workforce was employed in human health and social work activities.

Compared with the other selected market services shown in Map 5, education (NACE Section P) accounted for a much smaller share (1.5%) of the EU’s business economy workforce in 2021. Across NUTS level 2 regions, this share ranged from a low of 0.2% in the Finnish archipelago of Åland up to a high of 5.4% in the northern Spanish region of La Rioja. The regional distribution of employment in education was skewed, insofar as 95 out of 240 NUTS level 2 regions had shares that were equal to or above the EU average, compared with 145 regions that recorded lower than average shares.

Map 5: Employment in selected service activities, 2021
(%, share of business economy employment, by NUTS 2 regions)
Source: Eurostat (sbs_r_nuts2021) and (sbs_sc_ovw)

Focus on accommodation services

The COVID-19 crisis had an unprecedented impact on accommodation service activities, with most EU governments closing or strictly limiting access to hotels and other forms of accommodation in March 2020. Despite the gradual re-opening of accommodation services and the roll-out of vaccination programmes, many hoteliers continued to face weak demand in 2021. This was especially the case for foreign tourists, who were reluctant to plan/book holidays abroad. Business travel also remained below pre-pandemic levels as trade fairs / conferences took time to restart (after restrictions were lifted) and some businesses continued to favour online meetings. More detailed information on regional tourism statistics is presented in Chapter 10.

In 2021, accommodation service activities employed 2.2 million people across the EU; this represented 1.4% of the business economy workforce. Figure 3 shows the 20 NUTS level 2 regions in the EU where accommodation services accounted for the highest share of business economy employment; only regions with at least 3 000 people employed in accommodation services were taken into consideration. These 20 regions were concentrated in some of the EU’s most well-known tourist destinations, particularly southern coastal and island regions, and Alpine regions. The highest share was recorded in the Greek island region of Notio Aigaio (25.7%). Double-digit shares were also observed in

2 other Greek regions – Ionia Nisia (21.4%) and Kriti (15.1%)
Provincia Autonoma di Bolzano/Bozen in northern Italy (11.5%)
the Portuguese regions of Algarve (11.3%) and Região Autónoma da Madeira (10.2%).

The COVID-19 crisis disproportionately affected the economies of regions that were reliant on tourism and hospitality services. This reflected, among other factors, a dramatic fall in demand for accommodation services and the relatively insecure nature of work (for example, among young people and/or those with temporary employment contracts). Among the 20 regions where accommodation services accounted for their highest share of business economy employment, the information presented in Figure 3 is ranked according to the change in employment for accommodation services between 2020 and 2021. It shows a considerable rebound in activity for some regions, as they returned to some form of normality after the crisis. For example, the number of people employed in accommodation services more than doubled in the French island region of Corse (up 112.3%), while very high growth rates were also recorded in 3 Greek regions – Notio Aigaio (54.1%), Kriti (41.3%) and Ionia Nisia (38.0%). By contrast, employment levels remained unchanged or continued to fall in other regions. For example, Illes Balears (Spain) and Região Autónoma da Madeira (Portugal) both reported growth of less than 1.0%, while employment levels fell in Tirol, Salzburg (both Austria) and Canarias (Spain); many of these regions with low or negative rates of change are year-round destinations.

Figure 3 also provides information on the relative size of the accommodation services workforce. In 2021, 2 Spanish island regions – Canarias and Illes Balears (56 000 and 36 100) – had the highest and 3rd highest numbers of people employed in accommodation services; the 2nd highest figure was recorded in the Greek region of Notio Aigaio (38 100 people).

Figure 3: Employment in accommodation services, 2021
(%, annual change compared with 2020, by NUTS 2 regions)
Source: Eurostat (sbs_r_nuts2021), (sbs_r_nuts06_r2), (sbs_sc_ovw) and (sbs_na_sca_r2)

Source data for figures and maps

Business statistics at regional level

Data sources

Enterprise demography

As of reference year 2021, regional statistics for enterprise births, survival rates, enterprise deaths and high-growth enterprises have a new legal basis – Regulation (EU) 2019/2152 on European business statistics. It enriches business demography data by providing additional regional breakdowns and size class information. The statistical unit used for regional business demography statistics is the enterprise.

Structural business statistics

European structural business statistics cover the structure, economic activities and performance of businesses. They provide users and key policymakers with much needed information for decision-making, covering the ‘business economy’ (defined here as NACE Sections B to N and P to R and Divisions 95 and 96) which includes industry, construction, distributive trades and other market services.

Regulation (EU) 2019/2152 repealed 10 legal acts in the field of business statistics and provides the technical specifications for European business statistics. This new legal basis applies from the 2021 reference year. It broadened the activity coverage of structural business statistics to include financial and insurance activities (NACE Section K); education (NACE Section P); human health and social work activities (NACE Section Q); arts, entertainment and recreation (NACE Section R); other personal service activities (NACE Division 96).

Regional structural business statistics are compiled for the number of people employed (as used in this chapter), as well as for the number of local units and for wages and salaries. The data presented in this chapter cover the ‘business economy’ and therefore exclude agricultural, forestry and fishing activities (NACE Section A), as well as public administration and defence, compulsory social security (NACE Section O) and the activities of membership organisations (Division 94).

The statistical unit used for regional structural business statistics is generally the local unit, which is an enterprise or part of an enterprise (for example, a workshop, factory, warehouse, office, or depot) that is situated in a geographically identified place.

The nature of regional structural business statistics – combining a very detailed level of the activity classification with the regional classification – means that certain data cells aren’t disclosed/published for reasons of statistical confidentiality.

Indicator definitions

Enterprise demography

Within the context of enterprise demography statistics, an enterprise birth concerns the creation of a combination of production factors with the restriction that no other enterprises are involved in the event. As such, births don’t include entries into the enterprise population due to mergers, break-ups, split-offs or restructurings of existing enterprises, nor do they include entries into a subpopulation resulting only from a change of activity. Rather, an enterprise birth occurs when an enterprise starts a new activity with new production factors and new jobs created. If a dormant unit is reactivated within 2 years, this event isn’t considered as an enterprise birth.

An enterprise death is the dissolution of a combination of production factors, again with the restriction that no other enterprises are involved in the event. As such, deaths don’t include exits from the enterprise population due to mergers, take-overs, break-ups or restructurings of existing enterprises, or exits from a subpopulation resulting only from a change of activity. An enterprise is included in the count of deaths only if it isn’t reactivated within 2 years.

High-growth enterprises are defined as those with employment growth of more than 10%. Rates of change are based on average annualised growth for the number of (paid) employees over a 3-year period (t-3 to t). To be classified as ‘high growth’, an enterprise must have had at least 10 employees at the beginning of the period under consideration.

Employment

The structural business statistics presented in this chapter are based on a count of the number of people employed. This indicator is defined as the total number of people who work in the observation unit, as well as people who work outside the unit who belong to it and are paid by it (for example, sales representatives, delivery personnel, repair and maintenance personnel). As well as (paid) employees, the number of people employed includes working proprietors, partners working regularly in the unit and unpaid family workers.

Context

Businesses in the EU are leaders in many industrial, construction-related and service sectors. However, the global business environment continues to undergo rapid change. This may take the form of technological change, developing patterns of trade and investment, increased awareness of environmental responsibilities, the introduction of new and more flexible working practices, or sudden economic shocks (such as the COVID-19 crisis or the effects of Russian military aggression against Ukraine). Changes such as these may disrupt markets and supply chains, impacting how businesses work. To remain competitive, EU businesses often need to innovate, embrace technological change, adopt methods that use less energy, reduce waste and avoid pollution, and/or invest in skills.

Single market strategy

The EU’s single market allows people, goods, services and money to move around the EU almost as freely as within a country. EU citizens can study, live, shop, work and retire in any EU country, while enjoying products from all over the EU. The single market gives business a large domestic market, stimulating trade and competition, and improving efficiency. Hundreds of technical, legal and bureaucratic barriers to free trade and free movement between EU countries have been removed. As a result, businesses have expanded their operations and competition has brought prices down and given consumers more choice.

As part of its 6 priorities for 2019–24, under the heading of ‘An economy that works for people – ensuring social fairness and prosperity’, the European Commission aims to develop a deeper and fairer internal market. In March 2020, the European Commission presented a Long term action plan for better implementation and enforcement of single market rules (COM(2020) 94 final).

Some barriers to a fully functioning single market remain. With this in mind, the EU is working to

address current regulatory or administrative obstacles that prevent people from easily buying or selling goods and services from or in another EU country
make it easier for businesses – small and medium-sized enterprises (SMEs) as well as larger enterprises – to raise money
encourage workers to take up jobs in other EU countries in order to fill vacancies and meet the need for special skills
prevent social dumping, the practice of implementing pay and or working/living conditions below those specified by law or collective agreements or that are otherwise prevalent
boost cooperation between national tax authorities
establish a common consolidated corporate tax base in the EU and a financial transaction tax.

Industrial policy

In September 2017, the European Commission outlined a comprehensive renewal of its industrial policy strategy bringing together existing and new cross-cutting and sector-specific initiatives, with the goal of making European industry a world leader in innovation, digitisation and decarbonisation – Investing in a smart, innovative and sustainable industry – A renewed EU Industrial Policy Strategy (COM(2017) 479 final).

In November 2018, the European Commission presented a fresh assessment of the situation – The Single Market: Europe’s best asset in a changing world – which provided details for a range of alternatives to develop the single market, while exploiting its full potential in a digital era and ensuring sustainability. In March 2020, these ideas were further developed within A new industrial strategy for Europe (COM(2020) 102 final), designed to help deliver 3 key priorities

maintaining global competitiveness
making Europe climate-neutral by 2050
shaping Europe’s digital future.

Green Deal Industrial Plan

It is widely agreed that the 2020s will be key for limiting the rise in global temperatures, as well as taking the initial steps that are necessary for the EU’s net-zero ambitions. However, these challenges also bring opportunities, as they may act as a catalyst for investment in clean energies and industries. The EU has a detailed framework in place for the transformation of EU industry, including

overall guidelines and ambitions outlined in The European Green Deal – striving to be the 1st climate-neutral continent, in particular the headline target of achieving net-zero by 2050
A new circular economy action plan for a cleaner and more competitive Europe (COM(2020) 98 final)
the ‘Fit for 55’: delivering on the EU’s 2030 Climate Target on the way to climate neutrality package, which provides a specific plan to put the European economy on track to face the challenge of climate and biodiversity emergencies.

In February 2023, the European Commission presented a range of new ideas in A Green Deal Industrial Plan for the Net-Zero Age (COM(2023) 62 final). Among other aspects, it highlighted: that phasing-out Russian fossil fuels was accelerating a new industrial revolution; the possibilities for developing a wide range of net-zero technologies in transport, buildings, manufacturing, energy, as well as new markets; the need to ensure job transitions and quality job creation through training and education.

The new Green Deal Industrial Plan is designed to encourage the EU to become a global leader in the net-zero industrial age. It highlights the need to increase dramatically technological developments as well as the manufacture and installation of net-zero products and is based on 4 pillars

a predictable and simplified regulatory environment
faster access to sufficient funding
skills
open trade for resilient supply chains.

Upskilling and reskilling the workforce

The COVID-19 crisis had a profound impact on labour markets: some people lost their jobs, while others experienced a significant loss of income. By contrast, green and digital transitions are opening up new opportunities for people and businesses. Rapid changes towards a climate-neutral Europe and digital transformations are changing the way that people work, learn, take part in society and lead their everyday lives. In the face of these challenges, it is likely that large parts of the EU’s labour force will need to acquire additional or new skills in order to keep their current jobs or find new work in expanding or new sectors of the economy. The European Year of Skills is designed to give fresh impetus to lifelong learning, empowering people and businesses to contribute to the green and digital transitions, supporting innovation and competitiveness.

This article forms part of Eurostat’s annual flagship publication, the Eurostat regional yearbook.

Maps can be explored interactively using Eurostat’s Statistical Atlas.

Explore further

Database

Regional statistics by NUTS classification (reg), see

Regional structural business statistics (reg_sbs)

SBS data by NUTS 2 regions and NACE Rev. 2 (from 2008 onwards) (sbs_r_nuts06_r2)

Regional business demography (reg_bd)

Structural business statistics (sbs), see

Enterprise statistics on the whole business population (sbs_ovw)

Enterprise statistics – regional data (sbs_r)

Enterprises by NUTS 2 regions and NACE Rev. 2 activity (sbs_r_nuts2021)

Business demography (bd), see

Business demography by legal form and NACE Rev. 2 activity (bd_l_form)

High growth enterprises and related employment by NACE Rev. 2 activity (bd_hg)

Regional business demography (bd_r)

Business demography and high growth enterprises by NACE Rev. 2 activity and NUTS 3 regions (bd_hgnace_r)

Business demography by size class and NUTS 3 regions (bd_size_r)

Thematic section

Publications

Paper and PDF publications

Eurostat regional yearbook – 2024 edition

Online publications

Methodology

Manuals and further methodological information

Metadata

Business demography (ESMS metadata file – bd_sims)
Structural business statistics (ESMS metadata file – sbs_esms)

External links

Legislation

Regulation (EU) 2019/2152 of 27 November 2019 on European business statistics

Visualisation

Eurostat statistical atlas (Chapter 8)