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The Demand for Business Coaching in Europe

The Demand for Business Coaching in Europe


Small and medium-sized enterprises (SMEs) are the backbone of the European economy, accounting for 99 percent of all businesses in the European Union (EU). Over the past five years, they have created around 85 percent of new jobs and provided two-thirds of the total private sector employment in the EU. 

Still, even with their extensive job creation track record, only 3 percent of start-ups go on to scale up. In other words, although there are millions of SMEs contributing impressively to the economy, very few of them grow and scale their business. So, there are a lot of great businesses in Europe with little direction to grow to their potential – signaling a significant need for business coaching services to help these companies succeed. 

This is just one of the reasons ActionCOACH, the international leader in business coaching, has been increasingly eyeing the European market for expansion. And, with our Master Licensee opportunity, it’s never been easier to dominate an exclusive territory in a booming market.

Here are a few contributing factors that make Europe the perfect place for new ActionCOACH franchise owners to make an impact, and what makes our services in such high demand

Impressive Economic Growth

While the U.S. economy showed positive signs of growth last year, the EU was even further ahead of the U.S., posting a notable growth margin of 2.5 percent. This impressive figure followed years of anemic EU economic growth caused by a series of debt crises. The optimistic numbers show Europe’s increasingly favorable climate and place in a global economic resurgence that’s only expected to continue in coming years. 

With a fast-growing economy poised for further development, Europe will undeniably become host to even more SMEs and start-up businesses. Not only are these businesses in need of the strategic planning and support offered by ActionCOACH business coaching, existing start-ups and SMEs will also need additional guidance to continue scaling their businesses in the favorable economy.

Deregulation Creating a Positive Environment for SMEs

In the same vein as economic growth spurring business coaching demand, increased deregulation for SMEs in Europe will also drive demand for business coaching. Over the past several years, the EU has spearheaded different initiatives to facilitate a business-friendly environment, provide easier access to financing and promote entrepreneurship overall. 

From the Commission’s Entrepreneurship Action Plan to their Small Business Act for Europe, they have put in place several different plans and programs – while decreasing regulation that inhibits SME growth – that have helped SMEs succeed, especially since the 2008 economic recession. Over the past 10 years, the number of SMEs in the European economy has grown by 10.8 percent, or 2.3 million enterprises. 

Along with this growth in business ownership, comes an increasing need for executive and business coaching to provide strategic oversight for first-time entrepreneurs and new entrepreneurs looking to grow and scale their business. This is just one of the reasons why Western Europe has the largest coaching industry in the world, with nearly 20,000 coaches in 2016

Unexpected Growth Creates Unexpected Problems

Although a favorable, pro-business economy seems like good news for business owners, it can also create some unexpected problems for them. Of course, growing too fast or not being able to keep up with demand are two problems most business owners wish to have. But, these issues can present significant problems for a business and counterintuitively, even contribute to their demise. In fact, about two-thirds of the companies that made Inc. Magazine’s 5,000 Fastest-Growing Companies list have either shrunk in size, gone out of business or been disadvantageously sold just a few years following recognition.

Strategic guidance and business coaching can help business owners not only quickly scale to their necessary size but also keep up with growth and prevent their business from becoming another failed venture caused by mismanaged growth. Because of European SMEs’ growing influence over the economy, along with their increasing demand for strategic business guidance, Europe provides the perfect landscape for business coaching.

The current EU economy is solid and pro-business, so there has never been a better time to own a business in Europe. But even with these favorable economic conditions, entrepreneurs need continued strategic guidance. And, the more businesses that continue to crop up, the more demand they’ll have for this strategic guidance – which is why there has also never been a better time to be an ActionCOACH Master Licensee in Europe. 

If you’re interested in aligning yourself with the industry leader in business coaching, fill out our form to request more information about ActionCOACH today. 

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The concept of business coaching, as it is widely known today, was pioneered in 1993 by founder of ActionCOACH Brad Sugars. More than two decades later, the company that started it all is still on top. In fact, no franchise in the “business coaching” category is 10% of our size in total revenues.

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