Where Small Businesses Are Scaling in Europe: Industry Trends to Watch

Founders today are scaling faster than ever. That often means hiring beyond borders. Whether you're bringing on an AI researcher in London or building a brand team in Dublin, the right talent in the right market can open the door to growth and strategic advantage.

Justworks’ Employer of Record (EOR) solution makes international hiring simple. You can onboard full-time employees, manage global payroll, and offer localized benefits without setting up a legal entity. All from one user-friendly platform.

Here’s a look at five European countries where Justworks customers are actively hiring, and the industries gaining traction in each.

United Kingdom: AI and Beauty on the Rise

The UK remains a top hiring market for startups in Europe, particularly in AI, software, and consumer brands.

Among our customers in the UK, we’re seeing strong activity in AI and machine learning, SaaS development, marketing and design, and beauty. That aligns with national data: professional, scientific, and technical activities account for 14% of UK SMEs, according to the Federation of Small Businesses. The hair and beauty sector is also surging, up 28% year-over-year since 2024.

Startups are drawn to the UK for its engineering talent and proximity to financial hubs like London, a global center for fintech and AI R&D. Consumer and beauty brands are scaling here too, thanks to a diverse, digital-savvy audience.

With Justworks EOR, you can hire locally, offer UK-based benefits, and pay in GBP without having to navigate employment regulations alone.

Spain: A Government-Backed Startup Ecosystem

Spain has become one of Europe’s most startup-friendly countries. From tax incentives in the 2022 Startup Law to coaching and funding via the Acelera Startups program, the government is investing in entrepreneurship.

Among our customers hiring in Spain, AI and tech are leading the way. The country offers a highly educated, multilingual workforce, affordable living costs, and a strategic launchpad into European markets.

For founders looking to expand R&D or grow technical teams affordably, Spain offers a pro-innovation climate with strong institutional support.

Netherlands: A Hub for Mission-Driven and Tech-Focused Teams

The Netherlands has quietly become a go-to market for startups focused on sustainability, health, nonprofit, and social impact.

Cities like Amsterdam and Eindhoven are attracting steady VC investment, especially in cleantech, AI, and biotech. We’ve supported customers hiring in health, nonprofit, and property marketing roles across the country.

Why the Netherlands? A multilingual, tech-literate workforce, strong business infrastructure, and growing public support for green and mission-driven businesses. With Justworks EOR, founders can hire in the Netherlands with confidence. We handle payroll, benefits, and local compliance, all from one place.

Ireland: Blending Beauty, Biotech, and Nonprofit Talent

Ireland’s mix of creative and technical talent makes it a standout market for startups in biotech, beauty, education, and nonprofit.

Dublin, in particular, is a fast-growing hub for global tech and early-stage startups. Its English-speaking workforce, cultural affinity with the U.S., and founder-friendly tax environment make it a strategic launch point for international growth. Beauty brands tap into Ireland’s digitally engaged consumer base. Biotech teams benefit from strong university pipelines and government funding.

With Justworks EOR, you can hire full-time employees in Ireland without opening a local entity. We help manage employment rules, payroll, and benefits so you can stay focused on growing your team.

Sweden: A Quiet Giant in AI Research

Sweden has long been a leader in innovation, but it’s not emerging as a hub for AI. With a strong research ecosystem and deep talent pool in AI, data science, and machine learning, Sweden offers a solid foundation for startups building in tech. Cities like Stockholm, Gothenburg, and Malmö consistently rank high for digital readiness and English proficiency.

Justworks customers hiring in Sweden often focus on research roles or technical specialists. Whether you’re scaling a new team or adding strategic capabilities, Sweden is a strong market to consider.

Why Small Businesses Choose Justworks for Global Hiring

Hiring internationally used to be complex and costly. With Justworks EOR, it’s now scalable, flexible, and founder-friendly.

We help you:

• Hire full-time employees in 30+ countries without setting up a local entity

• Pay employees in their local currencies

• Stay compliant with local labor laws and tax regulations

• Offer localized benefits tailored to each country

• Onboard faster and manage everything from a single platform

Global hiring doesn’t have to be complicated. With Justworks, it’s one less thing to worry about as you scale your business. Ready to build your team where the talent is? Talk to our team and see how Justworks can support your international hiring goals.