When mapping out a business plan and putting up a lasting strategy, the location we choose for the business very important. It has a way of affecting both the financial and talent-based aspects of the business. Your business location can decide how or with whom your business can scale.
With the rate at which entrepreneurs are growing globally, many European countries have joined the race to cater to their needs with the hope of becoming a good ground for future business giants. In this article, I have highlighted the top European countries that are great grounds for startups.
What Exactly Are Startups?
A startup company is a type that is just beginning to develop and have some innovative ideas they want to bring the market. These are ideas that are not available anywhere else and also have some benefits to offer users.
Usually, startup companies are small companies that are in the process of developing their product, and so need to be financed by founders and often don’t have any source of income. Such companies usually raise funds through crowdfunding websites depending on the kind of ideas they are bringing to the market.
What Should You Look Out for When Choosing Your Startup Location?
It is common for most startup founders to want to go local when starting their company because it allows them to personally oversee the progress of the project and to have a better grip on the big pictures, including legislation, possible startup incentives, available resources and markets that can be reached.
However, when choosing the location of your new business, here are some key factors you should consider:
- Available resources: there is no point in starting your business idea if there wouldn’t be enough resources to finish it. If it’s goods or brainpower that fuels your product, then, choose a location that will best give you the required resources.
- Startup business background: lookout for a location where previous companies have been successful. This will give you an edge ahead as the market will be receptive to your startup.
- Infrastructure: don’t forget that you will need the right infrastructure if you are looking to monetize your idea. So, choose a location that readily provides such an infrastructure. Look out for good roads, internet or telecom infrastructure – anything that will make your startup idea successful.
- Legal and fiscal incentives: there are some European countries that give a warm welcome to startups by offering legal benefits, tax deductions and other incentives to help startup founders.
Which European Countries Are the Best Startup Incubators?
Below are some top European countries that provide the best opportunities for startups to become the big giant companies they have always dream of. Here is the list of Countries in Europe for Startups
#1: United Kingdom
London has by far remained one of the biggest players in Europe that favors startups with Manchester also being one of the leading cities where startups have their offices. If you want to pitch your startup tent in London, it has the best opportunities for fundraising, and it will also offer you the opportunity to address a highly educated audience when we talk about startups and innovative ideas.
More than 30% of the European Venture Capitalists reside on UK soil, and only in 2018, more than £2.99bn was raised in venture capital for only tech startups. You will be provided the benefit of setting up your company in one of the many shared working spaces. The tax sector offers a wide range of incentives for startups, and it is quite easy to get a work visa in the UK.
#2: Sweden
Most people think IKEA when they here about Sweden, but when it comes to startup, this country is one key player waiting to make their next move. Though Sweden might not be leading on the funding side, it is definitely the origin of most major former startups, including Spotify and Truecaller. This country is also starting to test the FinTech industry with some interesting startups.
#3: Germany
Germany is also another leading country where sitting in a startup will be a great idea. In 2017, Germany was able to raise more than 500 million Euros to fund tech startups. In addition to this, it is very easy to obtain an international work visa in Germany, making the country an excellent startup destination.
Berlin which is the top city in Germany that offers a warm haven for startups has great infrastructural and cultural diversity that will enhance the thriving of any startup founder. Also, Berlin has a highly educated English-speaking population which makes the language barrier a non-existing entity in the country.
#4: Spain
Also on the startup map are these important cities; Barcelona and Madrid. With the number of successful startups in the mobile and tech sectors housed on the soil of Barcelona, the city is believed to increase in investment capital in the near future. And so, it is often called the “Smartest city.”
Spain also offers the benefit of a great educational system that provides high-profile employees as well as the enjoyable and affordable lifestyle of its citizens.
#5: Netherlands
Netherland is gradually putting itself at the forefront by providing interesting programs for startups, expertise from peers, technical direction and early-stage funding being provided by the state. Some of the best tech incubators, including Startupbootcamp and Rockstar, are all found in Amsterdam.
#6: France
I wouldn’t want to forget France as the country has been able to get itself at the center of the startup world by having great government incentives targeting small companies and startups in the tech sector and a successful startup project in BlaBlaCar. At the same time, Paris presently houses the largest startup campus (Station F) and some other large startup hubs.
#7: Romania
Having a solid background in IT, Romania got itself on the startup map in recent years as it has multiple accelerators and incubators that favors both local and international companies.
Startups here also have the backing of some government incentives and support system that excludes funding, tax deduction and guidance programs to benefit young professionals.
Although the leading city in Romania creating waves with the startup is Bucharest, there are also some other cities like Cluj-Napoca, Timisoara, Sibiu, and last that provide young entrepreneurs wonderful opportunities. Cyber Security, Smart City, Online payment and Fintech are some of the better-developed sectors in Romania.
These are 7 of the top leading countries in Europe where you can actually consider starting out your startup business. Don’t forget that the country in which your business is sited goes a long way to determine the success of the company. So, choose wisely!
