When startups and businesses assess which markets are key to a European expansion, they typically arrive at the UK, Germany or France. While all 3 of these are powerhouse economies and key to any European expansion plan, there’s a few markets that I think don’t get anywhere near the attention they should.
Poland:
After emerging from the dark ages of WW2 and Soviet-style communism, Poland has developed a powerhouse economy - the 6th largest in the EU. Fuelled by a strong STEM education system, proximity to Germany, and an independent currency, the Polish economy has achieved the second highest growth rate in the EU, growing by over 40% in just 8 years. With the second-highest rate of college enrollment in the OECD, a population of 38 million, and a huge expat community worldwide, it is no surprise that the Polish economy is rapidly converting from a German manufacturing subsidiary to a high-end knowledge economy - with an associated rise in wages and disposable income. All these factors combine to make Poland a key market for any company looking to expand into Europe.
The Nordics:
The Nordic countries have long featured on International Ranking lists for their quality education systems and high GDP/Capita values - driven primarily by oil money. Their native languages are (mostly) mutually intelligible, and English adoption rates are extremely high. With a significant combined population of over 25 million and high broadband penetration rates, it is clear the Nordic countries are in a strong macro position. But their real attraction lies in their well-deserved reputation as early adopters and innovators, with companies such as Skype, Spotify, Supercell, King and Rovio all coming from Nordic countries.
Spain:
Spain routinely makes the headlines for its shockingly high youth unemployment rate and shaky economy brought on by the Euro Crisis - which will of course make this last choice very contentious. But I would argue that Spain is still a key EU economy to conquer for one key reason - it is a great test-bed for a later expansion into Latin America. With the native Spanish-speaking population of LATAM exceeding 360 million people, and including key emerging markets such as Mexico, Argentina, Colombia and Chile, launching in Spain provides a great place to test how your product or business is received in the Hispanic market - without requiring the substantial amount of investment in time and resources required for dealing with the myriad of currency and regulatory issues that normally accompany an expansion into LATAM.
