Study: Regulatory hurdles are dangerous for start-ups

A survey of nearly 200 European startups shows that lengthy and complex compliance processes can hinder startups' growth.

Regulatory challenges are threatening the growth of European startups, according to the results of a study released today. The research, "European Tech Voices: perspectives from Europe's fastest growing startups," comes from Stripe, an enterprise financial infrastructure platform.

More than half (53 percent) of respondents say the time it takes to comply with regulatory requirements is their company's biggest obstacle. And more than three-quarters (79 percent) say this time commitment has increased in recent years. In addition, 83 percent of respondents believe that policies tend to be geared toward incumbents. Only 12 percent feel that policymakers understand their business realities.

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

However, European startups 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 in the labor market as clear advantages. More than half (56 percent) cite the geographical proximity of various markets as a plus point, as it offers companies short distances and enables rapid internationalization.