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Economy and Finance

Demographic Change and Business Dynamics in the EU

  • Scientific paper

Details

Identification
Discussion Paper 251
Publication date
25 June 2026
Authors
Igor Fedotenkov | Anneleen Vandeplas | Directorate-General for Economic and Financial Affairs

Description

This paper presents a longitudinal analysis of the relationship between firm entry and demographic structure in Europe and finds a hump-shaped relationship of firm entry with age.

Highlights

  • This paper investigates the relationship between demographic structure and firm entry rates in the European Union. 
  • The results suggest that the size of the 30-44 age group has the strongest positive effect on firm entry. 
  • This is in line with the notion that age has a hump-shaped effect on the propensity to engage in entrepreneurship. 
  • In addition, younger age cohorts are found to exert a more negative impact on firm entry than older age cohorts.
  • Rising educational attainment may partially offset the adverse effects of demographic ageing on business dynamism in the years ahead.

Information and identifiers

Discussion Paper 251. June 2026. Brussels. PDF. 28pp. Tab. Graph. Bibliogr. Free.

KC-01-26-051-EN-N (online)
ISBN 978-92-68-40196-5 (online)  
ISSN 2443-8022 (online)
doi:10.2765/3558653 (online) 

JEL classification: D22, J11, J15, L29, M13.

Disclaimer

European Economy Discussion Papers are written by the staff of the European Commission’s Directorate-General for Economic and Financial Affairs, or by experts working in association with them, to inform discussion on economic policy and to stimulate debate. The views expressed in this document are solely those of the author(s) and do not necessarily represent the official views of the European Commission. 

Demographic Change and Business Dynamics in the EU

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  • 25 JUNE 2026
Demographic Change and Business Dynamics in the EU