Startups are a vital driver for the development of a country's economy, the creation of new jobs and the promotion of innovation. According to a report by the Idea Foundation, the number of new companies has grown steadily in Luxembourg from 2003 to 2014.
The startup rate increased from 9.1% in 2003 to 9.7% in 2014. This rate is considerably higher than in Germany (7%) and Belgium (5%) and similar to the rate in France (9.9%), though it falls short of the leading countries in this field, such as the United Kingdom (14%) and Denmark (11%).
A startup is generally defined as a young, innovative company. In Luxembourg, the proportion of innovative companies stands at 66%, indicating that entrepreneurship in the country is generally in very good shape. It is these young, innovative companies that make technological breakthroughs and feed the process of "creative destruction" (a concept associated with world-famous economist Joseph Schumpeter).
Measures to encourage entrepreneurship
In recent years, Luxembourg has adopted various strategies in its bid to become a "nation of startups". This was the driving factor behind the ministry's launch of the Digital Tech Fund in 2016.
Luxinnovation, the national agency for the promotion of innovation and research, and its Fit4Start programme are also working to promote company creation and support startups in Luxembourg. The introduction of the new simplified form of limited liability company (SARL-S) has gone a long way in facilitating and encouraging new startups. The Innohub Luxembourg network is aiming to turn Luxembourg into an incubator for startups. Programmes such as Bee Creative and Fit4Entrepreneurship were set up to promote entrepreneurial spirit and support future startups. The Luxembourg Future Fund and the National Credit and Investment Institution (Snci) grant financial aids to young national and international startups.
Entrepreneurs looking for information can contact several institutions, one of which is the House of Entrepreneurship. This institution has two main aims: to promote entrepreneurship and entrepreneurial spirit at national level and to simplify the administrative procedures associated with this type of initiative. The Luxembourg House of Fintech also supports startups in the area of financial services, with the aim of developing the country's fintech community. Finally, in 2018, a House of Start-Ups, a project spearheaded by the Chamber of Commerce, is due to be set up and will host between 150 and 200 innovative startups in a variety of industry sectors.
(Article written by the editorial team of the luxembourg.lu portal)