Luxembourg’s four factors of production, which include land, labor, capital, and entrepreneurship, are vital as they are assets of Europe. In Luxembourg, two-thirds of its land is flat, and transportation runs smoother with this natural resource. The Gare Lëtzebuerg is the international transportation people use to travel through France, Belgium, and Germany, and its public transportation has been clean, rapid, and free since 2020 (O’Sullivan, F. (2022). Luxembourg and 19 of the 27 European members use Euros as their primary currency, making it more accessible to conduct business (Hughes, 2022). Luxembourg’s labor laws are designed to safeguard employees and provide them with one of the world’s highest quality social security, health insurance, retirement benefits, and unemployment benefits (Labor law in Luxembourg, 2023)
Luxembourg has a higher rate of early-stage entrepreneurial and capital funding in Europe. Factors include subordinate startup costs, higher potential for creation and development, and more founded networks and support systems for startups (Entrepreneurship in Luxembourg, 2023). Capital is an essential factor in Luxembourg’s success, and the country has a thriving economic sector that attracts investors from all over the world to invest in its products (The Government of Luxembourg, 2022). Sustainability is a growing section; the Luxembourg stock exchange handles 40% of Europe’s sustainable funds and bonds (Anouk, 2023). Easy transportation between cities provides better access for the skilled workers who take advantage of its substantial capital and entrepreneurial skills.
