Belgium is struggling to turn its entrepreneurial dynamism into significant job creation, according to a study published on Thursday by the National Bank of Belgium (NBB).
The study shows that Belgian businesses with rapid growth, often called “gazelles”, grow at a slower pace compared to those in neighbouring countries, limiting their impact on employment.
While many companies are founded in Belgium each year, the entrepreneurial drive is mainly sustained by older businesses rather than start-ups, the NBB notes. The real challenge lies not in the number of companies created, but in their ability to expand.
Digital technologies and globalisation are partly to blame, as they strengthen well-established “superstar businesses” and make it harder for new enterprises to emerge. However, Belgium’s highly regulated labour market and high wage costs also play a role.
The NBB recommends focusing support on firms that are genuinely expanding. A previous policy aimed at exempting social security contributions for the first hire proved popular but expensive. “Such policies to support start-ups do not necessarily lead to their growth,” the institution concludes.
