The annual EU Start-Ups Summit is scheduled from 20 April to 21 April in Barcelona bringing together more than 2,000 founders, investors, media staff, and startup enthusiasts across Europe. A rich meeting point for would-be investors and entrepreneurs, the event is the ideal opportunity to network, find funding opportunities, increase visibility, and learn from experiences. If you’re planning to establish a startup or even build a business in Europe, here are things that you must consider before taking the plunge.
Business Location is Dependent on Several Factors
Europe offers a multitude of locations that can meet the needs of an established business as well as startups. However, the best location will depend on a variety of factors. Your industry, target markets, and priorities all play a role in deciding where to open your entrepreneurial activity. A favorable business environment is also another factor to consider when deciding where to headquarter your business. Thus, it is vital that you do your research diligently before deciding.
For example, in Montenegro, business-friendly practices help attract companies to settle in the country. Potential businesses and startups are encouraged by the ease of forming a company from incorporation to tax payments. Clear rules exist for rules of incorporation, registration, and costs. In addition, the income tax rates are low, and the banking system works well. Foreign entrepreneurs can even form a limited liability company (LLC) with a starting capital as low as one euro. Hence, it is one of the countries in Europe where it is relatively easy to do business.
Access to Talent
Human resources are critical players in the success of a business. Without a good workforce, it is not possible to achieve the day to day goals of a company. Personnel is responsible for producing goods or delivering services, depending on the type of business. Staff plays a key role in innovation because the existence of a diverse workforce promotes different perspectives and ideas. In addition, skilled employees can offer outstanding customer service which elicits customer satisfaction and encourages repeat business. Satisfied clients are likely to recommend the business to others, translating to increased sales and revenues. However, staff retention is vital to business success as well. If there is a shortage of labor, it is essential that the company can access a pool of talent to replace those who have left.
Again, the location of a business attracts or deters talent. To illustrate, London is a leading financial center and home to a budding startup ecosystem. It also offers a diverse talent pool as well as access to capital. However, the cost of doing business can be high due to high rents and wages. On the other end, Berlin, which is a growing hub for startups offers a relatively low cost of living yet has a supportive regulatory environment while Amsterdam highlights its skilled workforce, strategic location, and good business environment as its strengths. Ditto with Dublin, known for its favorable tax environment. It has a strong talent pool and is home to many multinational companies. Stockholm can also rival other European cities because of its highly skilled workforce and a solid commitment to innovation and sustainability.
Overall, locations for a business or startup must consider a supportive legal and regulatory environment and access to a good labor market. Of equal value are infrastructure, accessibility, market demand, and the cost of doing business.