Startup ecosystem in Europe: best practices and lessons for Ukraine

Abstract

The scientific research paper examines the European experience in the development of startup ecosystems. The definitions of scientists of the concepts “startup” and “ecosystem of startups” are given. The importance of the development of the startup ecosystem for Ukraine and possible ways to find better solutions to strengthen such development are identified. Factors of internal influence on the startup ecosystem are analyzed, which include cultural (general business culture, history of successful business creation), social (human talent, investment capital, social networks, and mentors) and material, which has a specific geographical location (government agencies, universities, service companies, physical infrastructure, and open local markets). The structural components of the startup ecosystem are analyzed, their role in the functioning of the system and interconnections are revealed. The functioning of ecosystems of startups in Great Britain, Estonia, Germany, Switzerland, Sweden, and Finland are researched. The focus of the analysis was the structural elements of the startups ecosystem in these countries and their impact on the overall result. Statistics on venture capital flows, accelerators, and the total number of startups in leading European countries are analyzed. The main factors of successful functioning of the ecosystem of startups are revealed and the experience of European startup ecosystems are systematized. The Ukrainian ecosystem of startups is analyzed, their structural components and significant shortcomings that hinder its development are described. Weaknesses of the Ukrainian ecosystem of startups include lack of state support, insufficient funding, including due to international capital, underdeveloped infrastructure to support startups, lack of expertise and experience, the unfavorable investment climate and weak international ties. Possibilities and expediency of dissemination of European experience in the development of the Ukrainian ecosystem of startups is substantiated. Possible directions of application of the European experience of development of ecosystems of startups in Ukraine are substantiated. Three main steps have been proposed to strengthen the development of the Ukrainian ecosystem of startups based on European experience and in the context of Ukraine’s path to integration with the European Union.