Dynamics of startups in Europe: What are the critical success factors to put in place to help startups grow into scale-ups, especially in Belgium?

Details

Supervisors

Reynders, Didier

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

Startups are an important socio-economic subject for every country, every global trade organization and every government. The value startups create is significant and each country should set up the adequate tools in order to stimulate startup growth. This report actually discusses these tools and looks at how they differ from one country to another. We took the USA as a global benchmark for startup dynamics, and built our hypotheses on that basis. These were subsequently analyzed for Europe and more precisely, for France, Germany, the UK and Belgium. The Silicon Valley attracts various creators of technological innovations; it is a real benchmark regarding startups and will constitute the basis for our hypotheses on critical success factors. The hypotheses regarding the critical factors of success for startups are based on 7 specific points: Funding capacity; Administrative aspects; Tax system; Infrastructure; Employment; Networking; Market needs. These hypotheses were the basis of our analysis of the different selected European countries. In order to proceed to the analysis of every country, specialized literature as well as European statistic tools will be used. The study of each country will be separated in different sections following the hypotheses. A comparison between these countries will also be established in order to offer the best vision regarding dynamics of startups in Europe. Globally, these hypotheses are verified in the sense that the study of each country allowed us to identify these factors as game changers for startups. This doesn’t mean, however, that each country managed to set up the right tools in each of these points. In some countries, some of these factors are actually acting as a brake for startup growth. It has to be noticed that none of the countries analyzed has managed to implement a perfect ecosystem for startups, even if some of these countries are amongst the greatest economies in the world and are widely recognized for their startup dynamic. However, London clearly stands out for Europe as a benchmark. Regarding Belgium, there is clearly a new dynamic for startups. Not only does the amount of funds raised increase year after year but also does the number of startups created. Nonetheless, 3 specific points need attention in the following years in order to increase attractiveness, visibility and startup facilities, which would allow Belgium, and especially, Brussels to stand out as a startup hub: simplified and less expensive administrative procedure; more advantages regarding recruitment processes; greater information and clarity between the 3 regions within Belgium.