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Lack of Reforms as a Threat for Start-Ups

Published: July 26, 2011; 17:23 · (Vindobona)

The organization of young entrepreneurs demands improvement of framework conditions for start-up enterprises.

Lack of Reforms as a Threat for Start-Ups / Picture: © Flickr

“After the recovery from the crisis, optimism in the economy is slightly declining again. The Austrian young entrepreneurs increasingly see a stable economic development”, summarized chairman Markus Roth the results of the semi-annual economic survey of the organization of young entrepreneurs. 47% of the respondents do not see any changes, while one third expects an improvement in the economic situation. Only 17% anticipate a downturn.

As in the last two years already, a moderately positive general mood will prevail this year. “Our members confirmed their positive sentiment and their optimistic expectations, combined, however, with a realistic assessment of the economic situation”, stated Roth.

In the latest economic survey, 46% of young entrepreneurs said that they would continue to invest on a stable level. 25% are planning to increase the amount spent on new projects while another quarter wants to reduce investments. Compared to January 2011 (36%), more young entrepreneurs expect a stable development of profits (now 43%). Only one third (-10%) believes that the profit situation will improve. 22% expect a deterioration (after 18% in January).

“Hesitation to invest and declining optimism are the result of a lack of reforms. It is now time to tackle the problems in the education and pension system”, emphasized Roth. He argued that improvement of framework conditions was necessary in order to facilitate the successful development of start-up enterprises. “We need clear signals from politicians: quick realization of the ‘€ 10,000 GmbH’, a tax credit of € 50,000 for investments and improvement of general conditions for venture capital.”