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European Startup Monitor 2016



A key part in building the Digital Single Market is to help and promote Europe’s startups. Startups are vital to our economy, job market, and digital future. They<br />
are drivers of European innovation. No one creates more opportunities for employment than startups and other young companies; they provide around 50% of<br />
all new jobs. Data-gathering international research initiatives, such as the European Startup Monitor (ESM), are extremely useful. They give unique and authentic insight into emerging startup ecosystems, providing detailed information and regular updates<br />
of their basic characteristics under one comparable methodology. All of this helps startups as they seek to link together in networks, join ecosystems across Europe and nd partners and investors. The ESM also assists policymakers and regulators in knowing exactly how to support startups in the best and most appropriate ways. Startups have an ambition to grow and want to spread across borders easily. Along with nding pro table, repeatable business models, their primary goal is to scale up. Of course, launching a new company with a new<br />
idea is one thing, but helping it to grow in a competitive marketplace is another. As the ESM’s research makes<br />
it clear, startups face many problems, including sales/ customer acquisition, product development, growth and raising capital. We also know that they nd it di cult to recruit and retain the right talent.<br />
All in all, there are too many restrictions and barriers for innovative entrepreneurs. The markets for capital and talent are fragmented across the European Union – as are regulatory regimes. This makes it hard to scale up across borders, whether one is setting up a company from another EU country or from outside the EU. The Digital Single Market strategy addresses many of these problems as well as other unnecessary digital barriers that startups face in their growth process. It aims to reduce obstacles so that startups have more freedom<br />
to innovate and scale up in Europe while operating across the EU‘s borders within the international market. This is part of the need for better regulation for the digital age—we need rules that are “ t for purpose” to promote the start and scale-up of digital businesses.<br />
For startups, the future is now.<br />
Andrus Ansip – European Commission Vice-President for the Digital Single Market
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European Startup Monitor 2016
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