The latest report from the StepUp Startups initiative, supported by ESNA, entitled “Ease of Doing Business for Startups in the EU” reveals the reality faced by European entrepreneurs. Every day, they face regulatory barriers, fragmented markets, slow visa processing, and funding gaps.The authors combined data analysis with interviews with more than 50 leaders from the startup ecosystem to create a unique comparison across EU countries. The result provides a useful basis for developing European measures and supporting national efforts to reduce bureaucratic barriers.
The battle for talent will determine the future
The global battle for the best minds has become a key factor in the success of startups. While the US continues its innovation drive, Europe is lagging behind, and the shortage of skilled professionals is growing every year.
The numbers speak for themselves: Europe produces 850 technical graduates per million inhabitants annually, while the US produces 1 100. At the same time, 60% of European companies are unable to find IT specialists, and almost half of the EU population lacks digital skills. Added to this are complicated visa regulations and a lack of programs to attract foreign talent.
A jigsaw puzzle instead of a single market
One of the report’s most important findings shows that Europe functions more like a jigsaw puzzle than a single market for startups. Although the Startup Nations Standard (SNS) initiative provides member states with a clear framework of best practices, their implementation still varies from country to country.
Markéta Přenosilová, Startup Ambassador at CzechInvest and Chair Emeritus of the ESNY Board of Directors, adds: “The report reconfirms that without systemic changes, Europe will not move forward. Market fragmentation and differing business conditions have long been a major obstacle to the growth of companies, including those in the Czech Republic. It is therefore crucial that the European Commission, together with the member states, preparea European form of company based on the EU Inc. initiative. If this model is successfully implemented, Czech companies will have an easier path to expansion, capital, and modern tools such as employee shares.”
Although the situation has been improving in recent years, the differences between member states remain large. In terms of compliance with European standards, Czechia currently meets 38%, which places it in the second half of the comparison between European countries. Czechia ranks well in areas such as access to finance, public procurement for innovation, and attracting talent, but improvements are needed in fast-track company formation, regulation, and social diversity.
source: StepUp StartUps Consortium
Photo source: Adobestock
