Startups on the rise: New EU regime promotes growth and innovation!

Startups on the rise: New EU regime promotes growth and innovation!

The Young Economy today welcomed the European Commission's new “Startup and Scaleup Strategy”. The announced 28th regime, which is intended to create a uniform legal framework for the establishment and growth in the EU internal market, is particularly positive. The aim is to give young companies the opportunity to think and act in a European way so that they do not fail due to national borders. In its report, Junge Wirtschaft finds that a fragmented domestic market is preventing startups from growing - many of them are now seeking their fortune in the USA.

Particular attention will be paid to the planned digital start-up procedures and the creation of harmonized and simplified rules in the areas of corporate, tax and labor law. These framework conditions are intended to help create better conditions for cross-border expansion. Nevertheless, the Young Economy expresses concerns and sees a need for clarification on key points of the 28th regime. It is requested that this initiative does not become a parallel bureaucratic model and that practical implementation with a real focus on simplification is required.

Challenges and opportunities for startups

Startups and scaleups are considered important drivers of innovation and make a significant contribution to economic development. They develop groundbreaking products and solutions, with a thriving ecosystem in the EU crucial to increasing productivity, investment and creating high-quality jobs. Loud EU research and innovation strategy It is therefore essential to remove barriers to the growth of startups. This initiative was launched back in 2016 to facilitate access to the internal market and promote successful entrepreneurship.

Nevertheless, European startups face significant challenges. A report from the StepUp Startups project, published at digital-strategy.ec.europa.eu, shows that regulatory fragmentation in Europe and difficulties in the mobility of talent and founders are hindering development. Key recommendations include the creation of a pan-European startup framework and the introduction of a single point of contact for regulatory inquiries.

The way forward

In addition, initiatives to promote access to venture capital must be promoted in order to close existing financing gaps, particularly when comparing Western and Eastern Europe. The importance of accelerators and support networks is also discussed, as these are often concentrated in larger cities and therefore accessibility for founders in less developed regions is limited.

The Young Economy advocates close coordination with the EU member states and business interest groups to ensure that existing regulations are consolidated and that real advantages arise for young companies. Only through collective efforts and collaboration can the competitiveness of the European startup ecosystem be strengthened and the gap with other markets be reduced.