Development of startup ecosystems in Ukraine and the European Union: Challenges and opportunities

Rodion Sevastyanov

Management and Business Articles, 2025, vol. 3, issue 2, 51-65

Abstract: The relevance of the researched problem is determined by the role of startup ecosystems as key drivers of innovation and economic development, fostering technological progress and addressing global challenges through sustainable practices and entrepreneurial activity. The article aimed to analyse the challenges and opportunities for the development of startup ecosystems in Ukraine and the European Union, with emphasis on their comparative strengths, barriers, and growth strategies. To achieve this aim, comparative analysis, a systems approach, and the synthesis of data from official reports, academic sources, and industry surveys were applied. It was found that the EU has a mature, diverse, and well-funded ecosystem with leading hubs in Berlin, Paris, and Amsterdam, supported by institutional programmes such as Horizon Europe. The EU ecosystem was shown to grow from around 60,000 startups and 50 unicorns in 2020 to 75,000 startups and 110 unicorns in 2023, with investments amounting to approximately $20 billion. In contrast, the Ukrainian ecosystem was characterised by dynamism and significant IT expertise, with 30% of startups concentrated in Software/SaaS and 15% in FinTech, but its development was constrained by political instability, limited access to capital, and challenges in scaling to global markets. It was established that the agility and innovative capacity of Ukraine’s technology sector can complement the EU’s structured markets and regulatory framework. Mutual benefits were highlighted through the combination of institutional support and market access with Ukraine’s resourceful and cost-effective talent pool. Emerging sectors such as GreenTech, AI, and FinTech were identified as promising areas for collaboration, while cross- border cooperation, coherent policies, and targeted investments were emphasised as crucial strategies for sustainable growth and resilience. The practical significance of the research lies in its applicability for policymakers, investors, and entrepreneurs in designing strategies to foster collaboration, enhance startup ecosystem development, and unlock the economic potential of partnerships between Ukraine and the EU

Keywords: economic development; innovation; technology; venture capital; entrepreneurship; collaboration (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bdw:emsesd:v:3:y:2025:i:2:p:51-65

DOI: 10.59214/mb/2.2025.51

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