European entrepreneurs trust AI firms more than governments as four-in-10 look beyond Europe

New research reveals growing frustration among startup founders, with British entrepreneurs particularly distrustful of government and rising costs threatening Europe’s ability to retain businesses

European entrepreneurs trust AI firms more than their own governments to help their businesses grow, with almost 40 per cent considering moving operations or investment outside Europe, new research suggests.

A survey of 700 founders found that just 27 per cent had high trust in their governments, compared with 37 per cent who placed the same confidence in AI providers.

Across the countries surveyed, 39 per cent had considered relocating, incorporating or raising investment outside Europe, while just 41 per cent believed the continent was a good place to build and expand a business.

Online sales platforms matched AI providers as the most trusted organisations, followed by investors at 35 per cent, business software companies at 34 per cent and cloud computing providers at 32 per cent.

In Britain, almost half of those surveyed, 47 per cent, believed the UK government had significant power over their growth, yet only 24 per cent trusted it to support their success.

The study also found that 56 per cent of founders relied on at least one type of organisation they did not fully trust, with 30 per cent of that group saying they had no suitable alternative.

The Startup Trust Index, which surveyed 700 founders across the UK, France, Germany, Italy, Spain and the Nordic countries, is released today to coincide with Web Summit 2026 in Lisbon.

It also found that 69 per cent of founders were already using AI in their businesses, with 19 per cent relying on it for important decisions and processes.

Among those already using AI, 56 per cent reported improved productivity, while 52 per cent said it had increased their revenue or profit margins.

However, many entrepreneurs are struggling with the cost of running their businesses. Almost a third, 32 per cent, cited operating costs as their biggest obstacle to growth over the past year, followed by economic or policy uncertainty at 29 per cent.

Lower costs were the most common demand for future growth, identified by 42 per cent of founders and half of those surveyed in Britain.

Denise Johansson, the chief executive and co-founder of Enfuce, which commissioned the research, said the findings highlight growing concerns over business costs, economic uncertainty and Europe’s ability to retain ambitious startups.

She said: “Europe’s founders trust AI providers more than their own governments to help them grow.

“Europe’s governments should take that seriously if they want the next generation of great companies built here.”

Johansson added: “And the stakes are about to rise. AI is moving from helping founders work to making decisions, including payments, on their behalf.

“When something goes wrong, founders will want to know exactly who answers for it. Technology can be copied. Trust has to be earned.”

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_{Main image: European entrepreneurs face growing uncertainty over business costs and government support, with new research revealing that almost four in ten have considered moving operations or investment outside Europe. The survey of 700 business founders also found that more trusted AI providers than their own governments to help their companies grow. Credit: Emmanuel Lozano via Pexels}