European Enterprise Models – New Chances and Challenges

The introduction of supranational enterprise models is one of the major projects in the course of European economic integration. Thanks to respective EU regulations, entrepreneurs can now choose from three types of legal vehicles (EEIG, SE, SCE) to conduct their business transactions across borderlines, and a fourth is expected to be adopted soon (SPE). Given recent trends to promote European corporate forms, but also keeping in mind that such options may be associated with possible burdens, it is the objective of this article to clarify the special features and overall significance of European enterprise models, in particular from the international perspective of foreign investors. Starting with a brief description of the current regulatory framework, the major part of this article will focus on certain key mechanisms and principles, which are designed to facilitate cross-border business transactions.

As a result, the consequences and practical impacts shall be evaluated, especially with regard to potential chances and challenges for entrepreneurs. In conclusion, lessons shall be drawn as to whether European business organizations might serve as useful models for entrepreneurs and investors from both within and outside the European Union (EU).