The study: five themes

Funding

 
Presence and clarity of funding support
Although funding is an inescapable issue for start-ups, its acuteness varies according to business sector, growth prospects, business model and business plan.

It is likely that, in cities where local entrepreneurship policy is well developed, institutions have tried to fill the gaps in a finance and banking system that is sometimes reticent to support businesses during the seed phase. However, we know that provision sometimes still lacks visibility, with tough access conditions.

Note that the Eastern European cities (Warsaw, Prague and Riga) are in the top half of the ranking. Warsaw already showed strongly last year. The catch-up effect is forcing cities in transition countries to develop funding solutions. Budapest, however, is lagging behind.


Environment




In line with entrepreneurship research that shows how local-environment quality impacts on entrepreneurial performance, the ECER study has paid special attention to the various aspects of this environment: the conditions of access to suitable property, the quality of the logistics network (public transport and road, rail and air networks, etc.), the quality of facilities favouring exchange between entrepreneurs (clubs, networks, events), knowledge capital (universities, laboratories…), the availability of skills that fit the activity of the budding business, and lastly, the quality of the living environment. Entrepreneur satisfaction is fairly good: except for Athens, the only European city to rate below 50%, satisfaction levels range from 60% to more than 80%.

This is the area where the north-south divide is clearest. Among the top 10 cities, nine are in Northern Europe. Of the bottom 10, seven are in the south. Noteworthy is the excellent position of Vienna, which leads the field in this area, followed by four Scandinavian cities. Athens and the Italian cities bring up the rear.