Not one country, but 27: practical steps for growing your business in the EU

Expanding your business from one country into the whole EU can feel like opening 27 different shops; daunting or might be even scary, but the opportunities are huge, especially if you build sustainably from the ground up. For SME owners in Central-Eastern Europe (or those looking to enter those markets), balancing ambition with smart practices is what separates the ones that grow well from those that struggle. Let’s take a look at some possibilities and pitfalls when thinking of stepping outside of national borders, as well as data and practical steps that you can start implementing today.

The possibilities, ie. why expanding across the EU is worth it

For many SME owners, the idea of scaling into neighbouring or farther-away EU markets is attractive because:

1. You access many more customers, often with relatively high purchasing power, especially in Western EU, or mid-sized markets in CEE.
2. You diversify market risk: downturns or regulatory changes in one country hurt you less.
3. You can tap into wider talent pools, whether it’s technical, language, or sustainability skills, that may not be available in your home market.
4. Sustainable business is increasingly rewarded: more customers, investors, and public tenders care about ESG, green credentials, circularity. Doing this well can actually become a competitive advantage. At the same time, having a stronger “European character” to your business can even be appealing to your customer base.
5. There’s real European-level support: funding, subsidies, European SME programs, legal & advisory help are growing, especially in green & digital transitions.

The pitfalls: what makes scaling across the EU harder than you might first think

Even with the above advantages, many SMEs underestimate some of the challenges. Here are things you will need to keep in mind:

• Regulatory fragmentation: Labour law, tax/VAT, permits, certification requirements vary a lot from country to country. What works in Hungary may need big changes in the Netherlands. Even small documentation requirements, licensing, local authorities rules can slow you down. And although hiring local advisors or experts might help, they can also prove to be quite costly.
• Late payments & financing challenges: Some countries have cultures of very long invoice payments. These can mean that your cash flow gets strained. Also, finance (especially for green or innovative projects) might require matching funds, special grants, or dealing with (lengthy) EU bureaucracy.
• Skills shortages and mismatches: You may need people who speak local languages, understand local market customs, and available there on the spot. These can present an opportunity – but also a difficulty, especially when starting things up 
• Cultural & consumer differences: Preferences, buying power, regulation, sustainability expectations differ. What consumers in Germany expect in packaging, or emissions data, might be very different from those in Romania or Poland. Although speaking from experience: Europe is a lot more unified than it might look at first glance in these regards, as well.

Let’s get practical, i.e. your checklist for European growth

4 practical tips, to help you get started and instill a European growth mindset in your business:

• Set up scalable legal + HR foundations

Already from day one, think outside your home country box, and set up your business structure in a way that it can later be built into a European scale operation.

• Hire with future markets in mind

Start building your team with a diverse talent base: people who know many European languages, cultures, or even have hands-on experience in other countries. Be also flexible in terms of your staff’s location: be open to remote team members, but also don’t be afraid to get local where needed

• Leverage EU funds, programs & incentives

This one is a bit trickier – take advantage of EU funds, but don’t build a business relying on them. Use it only for specific projects and achieving goals, but never for financing operations. At the same time, do take a look at mentor and educational programs that can support you in opening up your business to more countries within the continent.

• Data and transparency

Make sure that you build your business in a way that your operation and strategic decisions are data based from day one. And as such, make sure you communicate externally, and especially internally consatntley transparently, and in a genuine way. Slower, but more reliable growth will always prevail over haste and unsustainable, especially in Europe where laws and regulations may differ greatly from country to country.

Key takeaways for small business owners, looking to grow in the EU

Expanding across the EU isn’t about overnight success or ticking boxes on an EU funding form; it’s about building a business that’s adaptable, transparent, and ready for the long run. Sustainable growth in Europe means thinking about your people first: fostering an inclusive culture, hiring with different markets in mind, and creating structures that can scale without losing agility. Start small, but be intentional: testing your operations in one or two neighbouring markets with similar regulations or customer expectations can give you valuable insight before you grow further.

And while EU programs, grants, or training initiatives can give you a welcome boost, they should remain just that, a boost. The strongest companies use them to accelerate progress, not as their main engine. Ultimately, success in the European market comes down to how well you balance ambition with discipline: expanding boldly, but with a foundation built on solid data, genuine transparency, and long-term thinking.