A new report by Hungarian Insider announced that Hungary ranked as the eighth EU member state in terms of supporting startups.
In recent years, the Hungarian economy has risen above five percent growth, and is the most successful in Europe at the present time. Investing in startups is key to helping drive the economy even further over the coming years.
According to official data, investors pumped in twice as much to startups last year compared to 2017.
Although the level of value invested is not yet available, the Start-up-Barometer Europe of Ernst & Young states that startup development to the extent that has been seen in Hungary has not been found anywhere else.
Hungary is very active in the startup sector and more new businesses are born every year. In Europe, equity investments in startups increased by 15 percent, while in Hungary they increased by a whopping 100 percent.
Startup investors are comprised of Hungarian and foreign entrepreneurs, as well as the Hungarian state itself through the Hiventures and Széchenyi Capital Fund programs. From the country’s point of view, it is important that successful startups remain in Hungary. They are the driving force of the economy, even if they help build markets internationally.
It should also be noted that Hungary is able to create better infrastructure and internet networks for startups than in many other major cities in Western Europe. Another attractive factor for startups is that Hungary can provide them with an excellent workforce, mainly from highly qualified fresh graduates.
The investment index in Hungary has been high since 2017. However, in 2018 and 2019, the manufacturing industry and the private sector made a significant contribution to the growth of the investment index.
The Hungarian government will continue to make investments over the coming months and years that can further increase competitiveness.