According to new research from Imperial College Business School, digital entrepreneurs in Europe are most likely to flourish in Denmark, and the UK only came sixth in the rankings.
The European Index of Entrepreneurship Systems (EIDES) puts the EU member states in order according to the level of digital and non-digital entrepreneurial infrastructure in each country.
The Index provides insight into both general framework conditions that affect all businesses, as well as specific, or ‘systemic’ framework conditions that directly impact stand-up, start-up, and scale-up ventures.
The idea behind the ranking system is to provide a meaningful basis for cross-country comparison and provides policy scenarios to help each country work towards improving its conditions to support entrepreneurial growth.
Denmark came top because it provides the best general framework needed for setting up and running an enterprise on the following criteria: informal institutions (social and cultural norms, customs or traditions), formal institutions (written constitution, laws, policies, rights and regulations) taxation, market conditions and physical infrastructure.
The country also ranked highly in respect of resources that have an impact on entrepreneurial growth, such as people, knowledge creation and dissemination, finance, networking and support structures.
Not far behind Denmark were Sweden, Luxembourg and Finland, which all scored highly for offering the optimum conditions for digital entrepreneurs. After that came Germany, the UK, Netherlands, Ireland, Belgium, Austria, Malta, Estonia and France.
As one of the report’s authors commented, the UK’s global standing as a start-up hub could now be at risk, especially given the current economic uncertainty surrounding Brexit.
He added that Brexit risks eroding the positions of the UK’s entrepreneurial hotspots, with other European hotspots such as Berlin and Paris actively campaigning to attract start-ups and scale-ups away from the UK.
Jon Stocker, General Practice Partner at Milsted Langdon, said: “It is promising to see that UK entrepreneurs are ranking well compared to other European competitors.
“If you run a digital start-up and would like advice on how to help your business grow despite any Brexit uncertainties, then please get in touch today.”
For more information about how Milsted Langdon can help, please contact Jon at firstname.lastname@example.org or by calling 01935 383500.