This is suggested by a new study by the industry-related economic research institute EcoAustria, in the context of which the added value and the catch-up potential for start-ups in Austria were examined. During the presentation on Wednesday, their possible contribution to the positive development of the national economy was particularly emphasized.
Vienna. “The effect of start-ups is clearly noticeable for the entire location,” said Amelie Groß, Vice President of the Austrian Economic Chamber (WKÖ), in a press conference. Their innovative power is reflected above all in contributions to gross domestic product (GDP) or in positive employment effects on the labor market. Nevertheless, there is still a lot of catching up to do in Austria, as becomes clear in comparison with other European countries.
The start-up leaders are the Netherlands and the United Kingdom
According to the study commissioned by the Austrian Angel Investors Association (aaia), Austria has a relatively small number of start-ups. There are currently 687 companies per million inhabitants in this country, which puts the country in the middle of the range of European countries. By way of comparison, the front-runners, the Netherlands and the United Kingdom, have 2,400 and 1,811 start-ups respectively per million people. For this reason, these countries also served as a benchmark to illustrate the potential of the scene for Austria, explained EcoAustria director Monika Köppl-Turyna.
According to Köppl-Turyna, if the status of start-ups in Austria were adjusted to their level, there would be significant investment and employment effects. According to a model calculation carried out in the study, not only does the number of start-ups increase, but there are also clear effects on the labor market and GDP. Using the UK as a benchmark, that would mean an increase of 6,200 new start-ups and 8,000 more employees in 5 years. In this scenario, GDP would be 3.8 billion euros higher after ten years due to increased productivity, explained the economist.
“The results make it clear that start-ups not only represent 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, in order for this to become a reality, numerous hurdles must be cleared. A significant reduction in bureaucracy is needed. In addition, the young companies would have to contend 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 the general conditions.”
Above all, however, a participation allowance for investments is needed in order to make them significantly more attractive for many private investors. The potential for this is there, but it is important to create more awareness of the topic, added Lisa-Marie Fassl from aaia. In this context, politics is also required. There are some players here who have recognized the relevance of the topic. “Tackling things and implementing them” should now be the motto.
Source: Nachrichten
