European founders trust AI firms more than their own governments, survey finds
European startup founders trust AI companies more than their own governments to help their businesses grow, even though they see governments as the institutions with the most power over their growth, according to a new survey.
The Startup Trust Index was commissioned by Enfuce, a Finnish card-issuing and payments company. It asked 700 founders in the UK, France, Germany, Italy, Spain, and the Nordic countries how much they trust, rely on and feel the power of 14 types of organisation, from banks and investors to software providers and government.
Government came last on trust: 27% of founders said they trust it highly. It also came first on power, with 38% saying their government has a high degree of power over their growth. The gap was widest in the UK. There, 47% of founders said the government has a lot of power over their growth, but only 24% strongly trust it.
Founders gave more trust to the companies they deal with every day. AI providers and sales and distribution platforms tied for the top spot, each trusted highly by 37% of founders. Investors came next at 35%, followed by business software providers at 34% and cloud infrastructure providers at 32%.
More than half of founders (56%) said they depend on at least one type of organisation they have limited trust in. Of those, 30% said there is no suitable alternative. Another 28% said the organisation gives them capabilities they can’t easily get elsewhere, and 26% said the benefits outweigh their concerns.
Sales and distribution platforms were the organisations founders relied on most, with 35% rating their dependence as high. Investors (32%) and high-street banks (31%) came next.
Founders said trust comes from practical things. Value for money and keeping promises tied as the top factors, each cited by 36%. Being clear about terms, charges, and decisions came next at 32%.
Of the founders surveyed, 69% use AI in their business, and 19% use it for business-critical decisions and processes as well. Among AI users, 56% said it had raised their productivity and 52% said it had improved their revenue or profit margins. A quarter of all founders named AI as one of the developments that most helped their growth in the past year. Overall, 58% said AI is more of an opportunity than a threat to their business.
Technology is not everything, though. Almost two-thirds of founders (63%) said the relationships they have built matter more to their growth than the technology they use.
The survey also found weak confidence in Europe as a place to build a company. Only 41% of founders said Europe is a good place to build and scale a business, and 39% have considered relocating, incorporating, or raising money outside Europe.
Operating costs were the most common barrier to growth over the past year, cited by 32%, followed by economic or policy uncertainty at 29%. Asked what would help them grow most, 42% named lower operating costs. In the UK the figure was 50%.
Few founders are building their company in order to sell it. Only 17% described success in five years as a sale or a stock market listing. More said they wanted to build a durable, independent business, grow revenue and customers, or achieve financial security for their families, each at 39%.
Denise Johansson, Enfuce’s Chief Executive and Co-Founder, said governments should pay attention to the results. “Europe’s governments should take that seriously if they want the next generation of great companies built here,” she said.
She said the issue would matter more as AI takes on more work for businesses. “AI is moving from helping founders work to making decisions, including payments, on their behalf,” she said. “When something goes wrong, founders will want to know exactly who answers for it.”
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