Despite the fact that European Union as a single market has been around already for a while since its formal announcement back in January, 1993, we still getting many inquiries to explain what are the main advantages what European market can offer to someone who looking to start business in Europe. And since there are really unique opportunities related to EU single market from entrepreneurs perspective, we decided to compile them into one list:
World’s largest single market
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European Union is an economic zone larger than that of the USA and Japan combined with 500 million customers and it generates a GDP of about 16.2 trillion EURO (nominal) according to the International Monetary Fund. This makes it the largest economy in the world.
The EU’s 28 member states include some of the world’s wealthiest countries and altogether is a huge market in which to sell your goods and services. It also gives you access to a huge source of suppliers.
With the single EURO currency, doing business in the EURO area is more cost-effective and less risky. With a single currency, there are no longer a cost involved in changing currencies and it’s easier to compare prices in different European countries because they all are in EUROS. This enables companies to source cheaper materials and for consumers to buy cheaper goods.
One of the main purposes of creating single European market was free movement of people, goods, services and capital between all 28 member countries of European Union. You may choose to provide services in another EU country without establishing yourself there permanently. If you comply with the rules of the profession or trade that apply in one EU country, you can offer those services anywhere else in the European Union.
Trade within the EU has risen by 30% since 1992. The absence of border bureaucracy has cut delivery times and reduced costs drastically.
One set of rules
A key benefit from the single market is that businesses only have to deal with one set of rules rather than 28 different sets of rules when exporting to or operating in more than one European Union member state. All this leads to reduced bureaucracy, paperwork and consequently expenses as well. To help the European single market, the EU has also introduced measures to harmonise company law across Europe. This has helped to ensure:
- Easier access to funding
- Clearer and more effective legislation
- Protection for shareholders, creditors and employees
- A reduction in the administrative burden on businesses