global

FEATURE – WHERE START-UPS SUCCEED
UHY GLOBAL Spring 2016 17
angel investing are filling the gap left by more risk
averse institutions like banks and venture capital
firms. The Association for Financial Markets in
Europe calculates that 30% of finance available to
European companies is now non-bank funding.
Meanwhile, GEM reports that physical infrastructure
is considered the most valued component of a startup
hub by the start-up companies themselves. Good
transport links and high speed internet is often essential
to new business in a globalised world, wherever a
start-up happens to blink into life. At the same time,
many new businesses need access to an educated
workforce and a set of core professional services.
But while the presence of these factors is clearly
advantageous, experts warn that different start-up
ecosystems have different priorities, and that no
‘one size fits all’ global model exists. Slavica Singer,
professor of economics at the J.J. Strossmayer
University of Osijek in Croatia and co-author
of the GEM Global Report, argues that what
ecosystems need most of all, regardless of the
speed of local broadband services, is the flexibility
to change and the wisdom to do so sensibly.
“Healthy start-up environments share the ability
to change quickly, but without rushing into trendy
solutions without sufficient thought,” she says.
“Solutions must be contextualised, and checked
for harmonisation with other components of the
entrepreneurial ecosystem. For example, enriching
financial markets with entrepreneurial financial
instruments (such as angel investing) won’t contribute
to a healthy entrepreneurial ecosystem if you don’t
first teach entrepreneurs how to use them properly.”
LOCAL INITIATIVES, GLOBAL SIGNIFICANCE
Professor Singer believes that every healthy
entrepreneurial ecosystem is in some way unique
and the best examples of start-up friendly initiatives
Healthy start-up
environments share the
ability to change quickly,
but without rushing into
trendy solutions without
sufficient thought.