GEM 2025/26: Lithuania is Europe’s top-ranked economy for entrepreneurial environment

The latest 2025/2026 global report published by the Global Entrepreneurship Monitor (GEM) confirms that Lithuania leads Europe in the quality of its entrepreneurial environment and ranks among the world’s strongest economies in this field.

The most recent data capture entrepreneurial development at a time of heightened macroeconomic and geopolitical uncertainty worldwide. Around 67% of economies reported that in 2025 more people experienced a decline in income than an increase. In many countries, starting a business is now perceived as more challenging than a year ago, while structural imbalances are emerging as persistent, long-term obstacles.

According to GEM 2025/2026, Lithuania is one of only four countries globally where all entrepreneurial framework conditions – from access to finance and innovation infrastructure to the regulatory environment and government policy – have been assessed by experts as sufficient or better than sufficient. In 2025, this benchmark was achieved only by India, Lithuania, Saudi Arabia and the United Arab Emirates. Within the European Union, Lithuania holds the leading position, outperforming major economies such as Germany, France, Switzerland and Italy. Globally, the United Arab Emirates ranks highest this year for its entrepreneurial environment; however, Lithuania remains firmly within the top five highest-rated economies worldwide.

The Minister of Economy and Innovation, Edvinas Grikšas, emphasises that this achievement reflects focused and consistent economic policy:

“Lithuania is today recognised as one of the most favourable locations to establish and scale a business. This demonstrates that investment in innovation, the strengthening of the start-up ecosystem, digital transformation and the continuous improvement of the business environment are delivering tangible results. Our objective is not only to maintain leadership in Europe, but also to reinforce a high value-added economy capable of competing globally.”

The GEM report highlights that the global economy is undergoing profound structural transformation. Digitalisation is accelerating, the role of artificial intelligence is expanding, and business models as well as the drivers of competitiveness are evolving. Although digital transformation has become an inevitable component of business development, globally only a proportion of new and growing enterprises plan to intensify the integration of artificial intelligence or advanced digital technologies into their operations in the near term.

In Lithuania, the trajectory is clear: nearly half of early-stage entrepreneurs intend to expand their use of digital technologies in the coming months. This signals that technology is widely perceived as a strategic instrument for growth and export expansion, enabling businesses to compete in global markets and to develop higher value-added solutions.

“Lithuania today has not only a dynamic business community, but also a system that enables sustainable growth. Our aim is to ensure that the dynamism of business creation is accompanied by rising productivity, technological advancement and stronger internationalisation. This is what will secure the long-term competitiveness of the Lithuanian economy,” Minister Grikšas notes.

The Ministry of Economy and Innovation underlines that international GEM data serve as an important benchmark in shaping policy decisions aimed at strengthening competitiveness, innovation capacity and investment attractiveness in Lithuania. In Lithuania, the Global Entrepreneurship Monitor programme and related research are implemented by the Vilnius University Business School, which represents the country within the international GEM consortium.

Photo Credit: Gabriel Khiterer Go Vilnius