Name a country that doesn't want to boost its economy. Post global financial crisis, the pending question is how to do it. A recent report by The Kauffman Foundation shows that when compared to other businesses, startups increasingly create more jobs and employment. Innovation often occurs during times of hardship, and recessions in many countries have driven many young people to re-evaluate.
Not all business ideas are successful, not every startup creates jobs, generate revenues or launches products. However, supporting young companies is essential. Over time, startups and SME possess the potential to lift economic output. In a recent report by EY, entrepreneurs and technology were shown to have significant positive effects on business.
The Growth of Startup Hubs and Ecosystems
Today it's interesting to see many cities in Europe realising the potential of startups. Amsterdam, a major European airport hub connecting people and business travellers has also emerged as a hub for startup activity. The city now boasts Startup Amsterdam - an innovative new platform with impressive results.
Last year alone 139 new international companies established their offices in the Amsterdam metropolitan area. Price Waterhouse Coopers recently reported Amsterdam to be the 4th most competitive city in the world in competitive rankings.
Some factors leading to success
For Amsterdam, in part it's due to location (connection to the 350 million potential customers in the European marketplace), in part due to its relatively young and well-educated population. However, we believe it's largely the result of a strategy to establish itself as a reliable testing ground for new innovation and new companies. Through Startup Amsterdam, the Dutch government actively provides early stage startups a fertile breeding ground - just look at Elastic, Usabilla, WeTransfer and Adyen who all found their homes along the cozy canals of Amsterdam. There's more: startup accelerators like Rockstart and Startupbootcamp were founded here. Aside from this, having global leaders such as Heineken, Philips, Booking.com, Tesla, Uber and Netflix around, young startups are truly in innovative and competitive surroundings.
Read the whole article on Grow Advisors Blog.