Implications and aftermath effects of the financial crisis on startups in EU
Implications and aftermath effects of the financial crisis on startups in EU

Summary/Abstract: The 2008 Financial Crisis (FC) has been the most severe since the great depression. The interconnectedness of the financial sector has worsened the conditions enabling fast and unstoppable spillover of the negative effects across European markets. In a period of high unemployment levels, small business, especially start-ups have been recognized as one solution for reviving the economy. For that reason the paper at hand analyses the impact of the 2008 FC on start-up activity, their nature and survival rate. Special focus is placed on the financial availability in the contracting financial markets. The activity and role of alternative source of funding in the form of Business Angels (BA) and Venture Capital (VC) are particularly studied. The conclusion suggests that future research and policy actions should focus not only on increasing the level of capital available for start-ups, but also enriching and strengthening networks and linkages between all business actors.

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