The domestic start-up scene is on the rise, but still lags behind many other Western European countries. This is suggested by a new study by the industry-related economic research institute EcoAustria, which examined the added value and catching-up potential for startups in Austria. During the presentation on Wednesday, their possible contribution to the positive development of the national economy was emphasized in particular.
“The effect of start-ups is clearly noticeable for the entire site,” said Amelie Groß, Vice-President of the Austrian Federal Economic Chamber (WKÖ). Their innovative strength is mainly reflected in contributions to the gross domestic product (GDP) or in Positive employment effects on the labor market. Nevertheless, Austria still has some catching up to do, as shown by comparison with other European countries.
Austria in the midfield when it comes to the number of start-ups
According to the survey commissioned by the Austrian Angel Investors Association (aia), Austria has a relatively small number of start-ups. There are currently 687 companies per million inhabitants in this country, placing the country in the middle of the range of European countries. By way of comparison: the frontrunners in the Netherlands and the United Kingdom have 2,400 and 1,811 start-ups per million inhabitants respectively. For this reason, these countries also served as benchmarks to illustrate the scene’s potential for Austria, explains EcoAustria director Monika Köppl-Turyna.
According to Köppl-Turyna, there would be significant investment and employment effects if the status of start-ups in Austria were adapted to their level. According to a model calculation carried out in the study, not only is the number of starters increasing, but there are also clear effects on the labor market and GDP. Taking the UK as a benchmark, that would mean an increase of 6,200 new start-ups and 8,000 additional jobs in five years. In this scenario, GDP would be EUR 3.8 billion higher after ten years due to higher productivity, the economist explains.
“The results make it clear that start-ups are not only an economic factor worth billions today, but that they will become a key factor in our economy in the next ten to twenty years,” said Groß. However, for this to become a reality, many hurdles have to be overcome. A significant reduction in bureaucracy is needed. In addition, the young companies would have to deal with restrictive regulations when setting up and entering the market. The venture capital made available is also below the level of many other countries. “We are not yet where we want to be in terms of terms and conditions.”
Above all, however, a participation deduction for investments is necessary to make them considerably more attractive for many private investors. The potential for this is there, but it is important to increase awareness of the subject, adds Lisa-Marie Fassl of aaia. In this context, politics is also necessary. There are some players here who have recognized the relevance of the topic. ‘Take on and execute things’ should now be the motto.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
