Starting a company is no easy feat. The adversities and hardship that come with running a business are nothing short of trying. You can have a great concept and exceptional determination, and still never get your business off the ground. The level of competition in the startup world is at an all-time high, and without adequate consideration, especially in those earlier stages, you too can join that 90% of startups that fail each year. Choosing a location for your startup can have a substantial impact on your overall success, and it some cases, can make or break your dream.
In a previous blog post of mine, I reflected on the funding culture in Silicon Valley. While we’re still seeing the vast majority of investments coming out of the bay area, the overall nature of funding has shifted quite a bit. The more conservative nature amongst VCs in Silicon Valley has prompted entrepreneurs to seek funding in emerging markets. Startups have long been beneficial to the U.S. economy through the innovation and employment opportunities that they typically generate. Often times, areas in economic depression will attempt to attract new businesses through various enticements, including financial incentives. In a recent article for Inc.com, author AJ Agrwal, CEO of Aluminify, reflects on countries that leverage those same incentives as a way to attract startups and boost their economy.
Of those companies implementing such tactics, Chile has seen significant impact. Start-Up Chile, a program designed by the Chilean Government to “hasten the occurrence of customer-validated and scalable companies that will leave a lasting impact on the Latin American ecosystem”, has generated over 1,500 positions for chileans since it’s start back in 2010. The program, which will “pay you $50,000 to move your startup company”, was implemented in hopes of establishing a more diverse startup community. From the initial $880,000 investment made by the government, Start-Up Chile has raised over $5million in capital.
Another featured country, with a government affiliated program, is Ireland. Enterprise Ireland aims to attract entrepreneurs globally with similar incentives. Their mission, to support economic growth and regional development, has lead to significant job growth, creating over 19,500 new jobs back in 2014. Their High-Potential Start-Up program was designed to assist those entrepreneurs with prospects of achieving annual sales of over $1 million and employing 10 or more people.
Governments tend to support these programs in hopes of stimulating their economy for years to come thus, their more generous nature towards startups. Should you be interested if taking your startup across seas, be sure to look into similar opportunities. While your pitch might have failed to secure adequate funds in the states, that same pitch can reward you with quite the incentive in an alternate country. Who knows,moving your business to another country might just be the key to your success!