Free Essay

Estonia Startups

In: Business and Management

Submitted By peterfox
Words 306
Pages 2
Putting aside Estonia’s problems with migration, it has been one of the major success stories of Europe over the last few years. The existing government is relatively stable considering the extreme austerity measures they rolled out. The country has a history of being one step ahead of the rest in terms of technology, being the first country in the world to use online voting for the national parliamentary elections. In addition to that, they have impressive statistics showing that the country is producing more technology start-ups per capita than any other EU country. One of the more famous start-ups is of course Skype, and to ensure this trend is maintained, the Estonian government is now seeking to educate children in computer programming from as young as seven years of age as part of the school curriculum. They’ve also introduced Smartlab, a public/private partnership with companies including Microsoft, which will see the creation of hobby groups for 10-19 year olds to get instruction in robotics, programming and mobile app and web design. There is no corporate tax on re-invested profits which is promoting long term investment. Their corporate tax rate has been falling continuously since 2004 when it was at 26%. It’s now at 21% but will be dropped to 20% in 2015. In terms of large scale manufacturing and distribution, the country has quick access to the Baltic Sea ports and has its own. With regard to energy security a forcible decrease in the oil shale share of the country's energy output is planned with a new nuclear power plant approved by the government to be built by 2023. With such a high emphasis on education in technology and programming, the future looks bright for Estonia if they can retain their young people, and reverse the declining trend in population.…...

Similar Documents

Free Essay


...705-S07 REV. 31 DE MARZO DE 2004 ÖRJAN SÖLVELL MICHAEL E. PORTER Estonia en la Transición Estonia había liderado el progreso económico entre los países en transición en la década de los 90, habiendo superado a sus vecinos bálticos Letonia y Lituania. Tras 50 años de sometimiento al régimen soviético, Estonia recuperó su independencia en 1991. Atravesó un período de crecimiento negativo del PIB a comienzos de los 90, pero registró un crecimiento sostenido a partir de mediados de los 90, superado únicamente por Polonia entre los países de Europa Central y del Este (Véanse Anexos 1 y 2). Las negociaciones para su incorporación a la Unión Europea habían comenzado en 1998 con altas posibilidades de que Estonia, al igual que un número de países con economías en transición, se adhirieran para el año 2004. En menos de una década Estonia había logrado crear una infraestructura de comunicaciones avanzada y para el año 2002 empresas tales como Ericsson y Nokia la habían utilizado como mercado-prueba para nuevas tecnologías. Los aglomerados (“clusters”) nacionales de TI y telecomunicaciones se hallaban entre los de mayor crecimiento de los Países Bálticos. A pesar del éxito de Estonia, su nivel de vida se situaba bastante por debajo de los de otras naciones europeas y sus tasas de desempleo eran altas. Aun cuando los responsables políticos y empresariales se mostraban decididamente a favor de la entrada en la Unión Europea, los sondeos de opinión a finales del 2001 mostraban que......

Words: 9706 - Pages: 39

Free Essay


...entrepreneurial ecosystems not only because they provide a petri dish for innovation, but because they create jobs. In an article on AllThingsD today, Jed Christiansen contends that the fundamental value of seed accelerators lies in their ability to both drive economic growth and foster an entrepreneurial culture within local communities. Why important Startups, small businesses and accelerators are critical pistons in the engine of job creation; there are a few who would argue with that. However, research from the Kauffman Foundation puts into perspective just how important they are. It suggests that, between 1980 and 2005, all net job growth emanated from companies fewer than five-years-old. When it comes to how to best reverse an economic downturn, about the only thing you might find politicians agreeing on is the importance of supporting small businesses. For accelerators, it doesn’t matter whether or not all of their startups raise big rounds of venture capital, it matters how well their graduates can build a network of support for their peers and for future companies. The deeper and more robust it becomes, the more success startups find and the more jobs they collectively create. One of the more interesting results was that the funding they received was the least important aspect of the program. What mattered more was the community they were accepted into via the accelerator. As more and more start-ups go through each program, the alumni network becomes bigger,......

Words: 2463 - Pages: 10

Premium Essay

The Many Faces of Startup Financing

...accredited investors. According to Startup Nation, “a staggering 87% of private financing for startup businesses comes from relatives and friends of the entrepreneur,” detailing just how prevalent this type of financing is. Perhaps they take out an informal loan from a family member, or potentially a more formal loan from a long-time friend. For this round of financing it is “fairly common to find the average investment per person to be between $5,000 and $20,000” according to David Newton, professor of entrepreneurial finance at Westmont College. One major advantage to family and friends as a funding source lies in the ability to execute the deals quickly. The Young Entrepreneur Council notes that whereas a Venture Capital or Angel Investor group would want to “get to know [them] for at least three months, [they] were able to close [their] seed round in about six weeks” by bringing a well thought out business plan to their friends and family. While it does have advantages, this capital source is obviously limited and tends to dry up quickly. With mounting expenses, entrepreneurs are often forced to turn to more institutional investors to acquire adequate capital. While expenditures range wildly from business to business depending on the industry, business model, and markets, almost all newborn businesses face expenses around every corner. According to Sarah Mitroff, “Sillicon Valley attorneys made an estimated $37 million in revenue from startups alone.” Many entrepreneurs......

Words: 1878 - Pages: 8

Free Essay

Working at a Startup

...I had 3 months of compulsory internship (graded in the college curriculum) and another two months of holidays which I could include in the above mentioned time. Like any college kid, I was confused where I should intern. Seniors and family in IT field advised big companies are good for CV and shall help get a better paid job but no substantial work shall be given. While, at startups I was sure to get enough work and responsibilities. Very frankly, I want to startup something of my own later or sooner, I wanted to experience the heat faced while running one! Thanks to my dear friend @annkur, I got my internship at I regret my decision. NOT. Sharing some of the memories below which made this internship an awesome experience: * Friends at a bigger company got an ID card, different from permanent employees and after weeks of sharing. I got the office keys, first day when I join! * I learnt everyone at a startup should have their designation as C2C – Clerk to CEO. Everyone has to wash plates (even the CEO) and everyone (including ground-staff) has some essential decision-making powers. * I get to work, a lot. Not many consider it as a plus but I guess I am some different kind of an idiot. During my time at PriceBaba, I was involved in a technical project, sales, content, marketing (social and offline), HR and what not! * The HR part reminds me of the best experience I had. I got to interview an IITian for a job at the company and even reject him!...

Words: 419 - Pages: 2

Premium Essay

Startup = Growth

...September 2012 A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit." The only essential thing is growth. Everything else we associate with startups follows from growth. If you want to start one it's important to understand that. Startups are so hard that you can't be pointed off to the side and hope to succeed. You have to know that growth is what you're after. The good news is, if you get growth, everything else tends to fall into place. Which means you can use growth like a compass to make almost every decision you face. Redwoods Let's start with a distinction that should be obvious but is often overlooked: not every newly founded company is a startup. Millions of companies are started every year in the US. Only a tiny fraction are startups. Most are service businesses—restaurants, barbershops, plumbers, and so on. These are not startups, except in a few unusual cases. A barbershop isn't designed to grow fast. Whereas a search engine, for example, is. When I say startups are designed to grow fast, I mean it in two senses. Partly I mean designed in the sense of intended, because most startups fail. But I also mean startups are different by nature, in the same way a redwood seedling has a different destiny from a bean sprout. That difference is why there's a distinct word, "startup," for......

Words: 5367 - Pages: 22

Premium Essay

Financial Options for a Startup

...the service has expanded from allowing conversions between euros and British pounds sterling to also include US dollar, Polish zloty, Swiss franc, Hungarian forint, Georgian lari, and the respective krona of Norway, Sweden and Denmark. The creation of TransferWise was inspired by the personal experiences of Taavet Hinrikus, Skype's first employee, and financial consultant Kristo Käärmann. As Estonians working between their native country and the UK, they felt the "pain of international money transfer" due to bank charges on the amounts they needed to convert from euros to pounds and vice versa. In the words of Hinrikus, "I was losing five per cent of the money each time I moved it. At the same time my co-founder Kristo Käärmann (also from Estonia) was starting to get paid in the UK and was losing a lot of money transferring cash back home to pay for a mortgage there.” It inspired them to make a private arrangement, with Hinrikus – who was paid in euros – putting this currency directly into Käärmann's Estonian account so he could pay his mortgage without having to convert pounds to euros, while Käärmann returned the favour by putting pounds into Hinrikus UK account. This inspired them to develop a crowdsourced currency exchange service to offer a cheaper alternative to established institutions. After three years of developing, their business is counted among to one of the most inspiring and hottest tech-start-ups in the world. In the early beginning both founders started by......

Words: 5443 - Pages: 22

Premium Essay

Eu Funding Usage in Estonia

...Results 9 3.2 Example 2: BioFix 10 3.2.1 Context 10 3.2.2 BioFix Project 10 3.2.3 First steps 10 3.2.4 Partners 10 3.2.5 Results 11 Introduction After centuries of Danish, Swedish, German, and Russian rule, Estonia attained independence in 1918. Forcibly incorporated into the USSR in 1940 - an action never recognized by the US - it regained its freedom in 1991 with the collapse of the Soviet Union. Since the last Russian troops left in 1994, Estonia has been free to promote economic and political ties with the West. It joined both NATO and the EU in the spring of 2004, formally joined the OECD in late 2010, and adopted the euro as its official currency on 1 January 2011. Republic of Estonia is a country in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia, and to the east by Lake Peipus and Russia. The territory of Estonia covers 45,227 km2. Estonia is a democratic parliamentary republic divided into fifteen counties, with its capital and largest city being Tallinn. With a population of 1.3 million, it is one of the least-populous member states of the European Union, Eurozone, the North Atlantic Treaty Organization and the Schengen Area. Estonia has a modern market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region. Estonia's successive governments have pursued a free market, pro-business economic agenda and......

Words: 4149 - Pages: 17

Premium Essay

The Lean Startup

...The Lean Startup The Lean Startup is a methodology published by Eric Ries in 2011 intended to reinvent how we build businesses today. Since publishing the book The Lean Startup, the fundamentals behind the book have become a widely used process for many technology startups and has since progressed into curriculum of renowned universities and established businesses. The comprehensive idea behind The Lean Startup is to hypothesize, test, and refine your product or service as you build your business to ensure success with the least amount of resources. Although these ideas have recently become popular after the release of Ries’ book, the ideas and concept date back much further. Many of the concepts adapted by The Lean Startup were derived from the familiar Lean Manufacturing views. Improving quality, eliminating wastes, reducing time, and reducing costs are all intricate adaptations from lean manufacturing. Ries began to formalize his knowledge of building businesses after several failed attempts at starting technology businesses. The cycle of lean startup practices were intended for businesses to reduce startup costs, test the market, and improve viability. Historically tech startups would begin with an idea, create the product or service, seek large amounts of funding, and then bank their entire company on one grand launch with hopes of instant success. With Ries’ model startups now create their minimum viable product, test various aspects of the product on a small......

Words: 821 - Pages: 4

Premium Essay

Mt499: Startup Costs for a Business

...Plan: Contributing to the Success of the Business Operations Startup Expenses and Expected Generated Revenue Business startup costs vary depending on the type of business that owners plan to operate. Factors such as wages paid to employees, equipment, products, services, location, and advertising all play a major role in spending costs. Startup costs can be quite expensive. Business owners seek financial assistance from the government, private foundation agencies and other external resources to aid with covering the costs. They develop a financial plan that displays, in great detail, the financial elements of the business so that they are aware of the funds that they need to begin their operations. The financial plan consists of pricing models, income statements, balance sheets, break-even analyses, and cash flow analyses that helps business owners determine if they are ready financially to open their business. The goal of this paper is to discuss the financial plan that Be All That You Can Be Learning & Recreational Center has developed that will contribute to the success of their company. The paper will include information discussing the company’s startup costs, pricing model, income statement, balance sheet, break-even analysis, and cash flow analysis. These financial documents represent the core of the company and will determine if the company can achieve longevity. Be All That You Can Be estimates its startup costs to be $58,600. The company plans to seek......

Words: 1320 - Pages: 6

Premium Essay

Employee Engagement at Startup Companies

...Abstract The purpose of this study is to identify most common strategies in managing employee engagement in startup companies in Seattle, Washington, US. Although many research and studies has been conducted to identify strategies to manage the employee engagement, many companies are still unsuccessful to improve their engagement level and their turnover rate. Therefore, this research will narrow the study of employee engagement to a specific type of company, so the result of this study will be most possible to be adopted and referred by other companies in the same category. Engagement level in thirty sample startups will be determined using ISA Engagement Scale and common HR strategies will be evaluated among companies with higher employee engagement score. In the future, the findings of this study can be use as a reference for practitioners at startup companies to develop a better human resource strategy, improving their employee engagement level. Keywords: engagement, startups, human resources, strategy Introduction According to State of the Global Workplace Study by Gallup, there are only 13% of employees are engaged at work in the world. In other word, only one in eight employees that are emotionally committed to their work, contributing to the company’s growth by working effectively and efficiently. Studies have proved that engaged employees contribute to the company’s performance (Arrowsmith & Parker, 2013; Reilly, 2014; Pollitt, 2008) and strategies to......

Words: 3379 - Pages: 14

Premium Essay

Startup Plan

...reduce regulatory burden, startups shall be allowed to self-certify compliance with labour and environment laws. In case of labour laws, no inspection will be conducted for three years. In case of environment laws, startups under ‘white’ category would be able to self certify compliance. 2. Startup India hub – Will be single-point of contact and hand-holding. 3. Simplifying the startup process – A startup will be to able to set up by just filling up a short form through a mobile app and online portal that will be launched in April. 4. Patent protection – PM Modi said patent protection and IP rights are a major concern for Indian startups. The government will make IPR procedure transparent for stratups. Fast track mechanisms of startup patent applications – in order to allow startups to realise the value of their IPRs at the earliest possible. Patent applications of the startups shall be fast tracked for examination and disposal. 5. Panel of facilitators to provide legal support and assist in filing of patent application– Facilitators shall provide assistance for startups in filing and disposal of patent applications related to patents, trademarks and design under relevant Acts. Government shall bear the entire fees of the facilitators for any number of patents, trademarks or designs that a startup may file. 6. 80% rebate on filing patent applications by startups – To enable startups to reduce costs in their crucial formative years, startups shall be provided......

Words: 910 - Pages: 4

Free Essay

Startup Company

...Startup Company Name Institution Date Describe the new start-up company that you have created. Include in your description the nature of your company, its mission and vision, your company’s product, an analysis of your staff, and your target clientele. DynaTech is a company that has emerged in the industry of drone navigation and since it was established, it has been capable of developing a standard operating process, which has been essentially responsible for the acquisition, transfer, and identification of knowledge between the various company network’s sections. Due to the skill shown by its management in handling diverse concerns, the company has been proficient in developing a clientele which in diverse establishments in such a short period, where other institutions take years to attain the same. The vision of DynaTech is to create an improved form ofexpertise for all its customers in the most and best secure way possible andso as to accomplish it. It has worked headed for the provision of a variety of serviceable and well-designed navigation systems. Additionally, it has guaranteed that the production cost is low to ascertain that the selling price of its commodities is low such that as most people as likely can be capable to buy them. The policy for human resource include provision of opportunities for down-to-earth people to grow in both professionally and individually so as to produce a better life each and every day not only for the workers but also......

Words: 807 - Pages: 4

Free Essay

Startup Web2.0

...Startup Web 2.0 Opportunity Statement:- John (my friend) is planning a startup to provide services towards home-finding and mortgage process until the mortgage application closes, and home funds. Background:- John has sent an email wanting to get some suggestions/feedback/ideas in his start-up initiative. And the below is the response articulating the proposal to implement some features/capabilities by leveraging the Web 2.0/Enterprise 2.0 technologies. Narration:- John, Glad to know that you are on your way to launching yet another start-up after a decade or so. Based on your email, my understanding is that you want to provide services right from time prospect home buyer can search for properties/homes, get pre-approval, look for best rates and mortgage lenders, upload documents and get underwriting approval. Further, close the mortgage all at one place. Certainly, there has been a good amount of progress seen on the Internet. There have been changes in the way organizations have been or will be conducting business, and this is just adjusting/responding to the way customers, employees, partners, etc. have been using the latest advancement in technology. Probably, launching web-site to provide these services will be a good start. Being adaptive to way people have been lately shopping, searching i.e. here are some of the necessary capabilities critical to be incorporated by leveraging Web2.0 technologies:- 1. Broad communication (Blogs/podcasts/videocasts/peer...

Words: 694 - Pages: 3

Premium Essay

Startups You Need to Know

...this paper for the most recent research papers by our experts. Disclaimer This report is a copyright of Nishith Desai Associates. No reader should act on the basis of any statement contained herein without seeking professional advice. The authors and the firm expressly disclaim all and any liability to any person who has read this report, or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this report. Contact For any help or assistance please email us on or visit us at © Nishith Desai Associates 2016 Start – Ups: What You Need To Know Contents 1. INTRODUCTION 01 2. STARTUP INDIA ACTION PLAN AND POLICY 03 I. II. III. Incentives by RBI Tax Incentives Incentives for ease of Doing Business 3. STRUCTURING I. II. III. IV. 4. Intellectual property lead global business Flipping business to go global Indian promoters / founders investing outside India Potential tax implications arising from promoters / founders conducting business of an offshore company in India INCORPORATING A LIMITED LIABILITY PARTNERSHIP IN INDIA 5. INCORPORATING A COMPANY IN INDIA I. II. III. IV. V. VI. VII. VII. 6. Governing Act Types of Companies Private Company One Person Company Public Company Incorporation Process (As per Companies......

Words: 22451 - Pages: 90

Premium Essay

Valuation of Startup Companies

...with historical data and comparative industry examples can be a bit confusing for the average person but with practice they really are not overly complicated. The discounted cash flow method, or DCF, is a widely academically accepted method that uses the concept of the time value of money to discount future expected cash flows. While often these DCF calculations can be fairly straightforward, there are instances where estimating future cash flows can be quite difficult. Startup companies pose significant challenges to the discounted cash flow model because of a lack of historical data. It may not be difficult to estimate future cash flows for a billion dollar company with years of data, but what about a 6 month old company with limited revenue and few tangible assets? In situations like this it is more important than ever for investors to look beyond numbers and to look deeper into the makeup of a company, its management, and their products or services. Difficulties in Using DCF to Value Startup Companies With discounted cash flows and almost all other valuation techniques, the less guesswork or estimation the better. The “Human Element” when making critical assumptions like growth rate can be affected by biases including excessive optimism and overconfidence. “Biases in traditional discounted cash flow valuation arise in connection with the cash flows themselves, for example, excessive optimism, or misframing, as is the case with the way free cash flows are......

Words: 1160 - Pages: 5