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Hungary’s Start-up Ecosystem Has Good Potential

MTI-Hungary Today 2023.02.01.

The development of Hungary’s start-up ecosystem could be a breakthrough point in talent attraction and digitalization, for which Hungary has a good foundation, but still lags behind its European and regional competitors, according to a recent study by McKinsey.

If domestic start-ups could grow at a rate and scale similar to other European countries, they could attract 2.5-5 billion euros of additional resources to the sector, and a significant share of this, 0.6-1.3 billion euros, would be used in the local economy, the global management consulting company wrote in a statement sent to Hungarian news agency MTI.

A more developed start-up ecosystem would increase tax revenues, help the uptake of digital solutions, and boost the digital transformation of the economy as a whole.

According to the McKinsey study, Hungary is well placed to achieve the goals outlined in the above forecast: it has a sufficient number of start-ups, the amount of venture capital available is within the average of the Visegrad countries, and a skilled workforce is available. In addition, the number of professionals in the IT sector exceeds the regional average.

According to McKinsey, there are seven factors that have a significant impact on the number of start-ups that are formed:

  • the ease of starting a business and raising capital
  • skilled workforce
  • a favorable tax environment
  • a strong entrepreneurial culture
  • strategic allocation of public funding
  • transparency and knowledge sharing
  • training for founders and professionals.
The Blue Planet Foundation Supports Sustainability Startups
The Blue Planet Foundation Supports Sustainability Startups

The foundation launched its .wave business development program earlier this year to support the development of innovative start-ups fighting climate change.Continue reading

Featured photo via Pixabay

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