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How to Become a Start-up Capital

Author

Listed:
  • Piret Karis

    (Tallinn School of Economics and Business Administration, Tallinn University of Technology)

  • Mait Rungi

    (Tallinn School of Economics and Business Administration, Tallinn University of Technology)

Abstract

Small, young, flexible and informal start-ups represent an appropriate vehicle for new disruptive products and services. The impact of innovation for nations is extremely high; several countries aim to achieve it, but there is a lack of research to support it. Silicon Valley has a glorious reputation thanks to the high concentration of start-ups. Silicon Valley is the most famous, but it is not the only one. Several sources have emphasized the Northern European town Tallinn as one of the European start-up capitals. Many famous start-ups locate or have started their business in Tallinn. Quantitative research was performed among startups in Tallinn, and as a result typical profiles were constructed. The typical founder is a middleaged, well-educated, financially-secure, ambitious male with prior experience. Start-ups have an innovative product and good team, but should have more patents, investments and cooperation with universities. The expected environment has a good tax system, low corruption, SME support policy, high technological base and access to resources.

Suggested Citation

  • Piret Karis & Mait Rungi, 2015. "How to Become a Start-up Capital," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 7(2).
    • Handle: RePEc:ttu:rebcee:80
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