European companies do not expect to recoup their pre-pandemic earnings until at least mid-2022, later than Asia (late 2021) and the United States (early next year), according to a study by Accenture.
In “Reinventing the European Company,” the company analyzes the position of European companies in relation to China and the United States and concludes that of the 4,400 companies that have more than $1 billion in revenue in these three regions, 39% are European.
Similarly, the companies of the Old Continent occupy at least 25% of the positions of the top 20 companies in any sector, except for technology and software, where there are only three European companies.
By contrast, ten of the 20 largest automobile companies and seven of the world’s largest mining and natural resources companies are based in Europe.
Accenture interviewed 700 CEOs of large companies on the continent between February and March, 77% said their company would grow over the next two years, and the French (81%) were the most optimistic in Europe. For their part, 67% of Spaniards said they aspire to improve their income.
In fact, Europe expects to double the number of companies worth more than a billion dollars by 2030 thanks to the massive adoption of technologies such as artificial intelligence and cloud.
One of the main factors behind this is the scaling up and financing of startups, something that happened before the pandemic, as 38,000 million euros were invested in 2019 in this type of company in Europe, with an annual growth rate of 33% since 2019.
However, in the United States there are still more than twice as many startups and funding is also three times higher.
To get to this point, managers consider it very important to create talent ecosystems, as well as properly invest next generation funds and implement employee training programs.
The emerging sectors identified by European directors are smart manufacturing, digital health and smart mobility.
These three sectors could receive €536,000 million in 2025, according to a study by the consultancy.