Study: Regulatory hurdles are dangerous for start-ups

A survey of almost 200 European start-ups shows that lengthy and complex compliance processes can hinder the growth of start-ups.

Regulatory challenges are threatening the growth of European start-ups, according to the results of a study published today. The study "European Tech Voices: perspectives from Europe's fastest growing start-ups" was conducted by Stripe, a financial infrastructure platform for companies.

More than half (53%) of respondents say that the time it takes to comply with regulatory requirements is the biggest obstacle for their business. And more than three quarters (79 percent) say that this time has increased in recent years. Furthermore, 83 percent of respondents believe that policies are more geared towards established companies. Only twelve percent think that policy makers understand their business reality.

"Tech companies across Europe are facing an increasingly challenging economic environment," says Matt Henderson, Global Business Lead at Stripe. That is why it is more important than ever to take the needs of the start-up scene seriously.

However, European start-ups also see some advantages to the tech market in Europe. 73 percent of respondents cite the high level of education in the region and the availability of talent on the labor market as clear advantages. More than half (56%) cite the geographical proximity of various markets as a plus point, as it offers companies short distances and enables rapid internationalization.