CzechInvest, a member of ESNA since 2002, joined the initiative with the aim of improving the environment for rapidly growing innovative companies. In 2021, the Ministry of Industry and Trade signed the Startup Nations Standard Declaration, the foundational document of ESNA.

“The results of the Startup Nations Standards report clearly indicates that Czechia still has some ground to make up in setting startup policy. On the other hand, we see at least two positive signs in 2024 – the establishment of the Coordination Council for Investors and Startups and a parliamentary subcommittee focusing directly on startups. Though that in itself doesn’t immediately change the conditions, it is illustrative of the rising interest in startups not only among experts, but also among politicians and the state administration, which previously wasn’t the case,” said Ivo Denemark, head of the Startup and Venture Investment Division at CzechInvest, commenting on the report.

The issue of startups is being actively addressed by the aforementioned Parliamentary Subcommittee on Startups, Science, Research and Innovation, whose focus on startups is newly reflected in its name for the first time. With its nine members, it is the third-largest subcommittee of the Committee on Economic Affairs, behind the energy and transportation subcommittees. One of the main key actors striving to change the conditions in the startup environment on the political level is the recently established Czech Startup Association.
An active role in the effort to improve the startup environment is played by the Coordination Council for Investors and Startups (CRIS), which was established with the aim of helping to fulfil the criteria of the Startup Nations Standard Declaration signed by Czechia in 2021. The declaration stipulates eight priority areas on which the European Union and individual member countries should focus in order to support the development of the startup environment. This involves issues including access to financing, attracting and retaining talent, ESOP (employee stock options), public procurement orders, establishment of companies and digitalisation, innovation and regulation, as well as social inclusion.

“It is definitely positive that the CRIS platform was set up within CzechInvest, where people from ministries and government organisations can discuss the individual ESNA standards with the business community. We are jointly focusing on key issues such as stock-option programmes, investment in startups and improvement of the way of attracting talent from abroad. For me, however, the main issue remains the implementation of a Startup Act, which based on the example of Spain, France and Romania could help to set special conditions for startups, whether in the area of employment relationships, taxation, bureaucracy or access to investments,” says Martin Jiránek, chairman of the Innovation and Regulation Standard and chairman of the Czech Startup Association.
The overall level of SNS implementation rose across Europe from 54% to 61%, which reflects the effort of the 28 ESNA signatories to support innovative business. Though Czechia recorded a slight improvement, it still lags behind the majority of European countries.

Challenges and key areas for improvement:

SNS 1 Fast Startup Creation and Smooth Market Entry – increase from 34% to 50%
SNS 2 Attracting and Retaining Talent – decrease from 61% to 48%
SNS 3 Stock Options – dramatic decline from 33% to 4%
SNS 4 Innovation in Regulation – increase from 0% to 47%
SNS 5 Public Procurement for Innovation and Technology Transfer – decline from 51% to 42%
SNS 6 Access to Finance – increase from 54% to 67%
SNS 7 Social Inclusion, Diversity and Protecting Democratic Values – unchanged at 0%
SNS 8 Digital First – increase from 45% to 47%