Behind the questionnaire survey is a working group for the preparation of the Startup Act composed of representatives of the above-mentioned institutions. The authors want to find out what specific barriers innovative technology companies face in the Czech Republic. The experience so far suggests that these are mainly problems in starting up companies, administrative complexity in the first years of business, access to capital or legislative barriers. “We are working on an analysis that will become the basis for the proposal of a new startup law. Its aim is to simplify life for both startups and investors. We want the law to reflect the real needs of the Czech startup environment and help it to reach its full potential. That is why we are jointly addressing companies with a questionnaire, the results of which will play a key role in the preparation of the new law,” says Deputy Minister of Industry and Trade Štěpán Hofman, adding that the questionnaire focuses on areas ranging from bureaucracy, taxes, access to financing, to ecosystem support and expansion abroad.
“The answers will help us identify and subsequently remove specific obstacles to the start-up and development of startups, map the reasons for companies moving abroad and better understand their needs in the areas of financing, talent or labour law. No publicly available sources currently provide us with such comprehensive data,” explains Markéta Přenosilová, head of the authoring team of the prepared startup law fromthe CzechInvest agency.
The online survey will run from 27 August to 7 September 2025 and the sponsors intend to present the results in the second half of September. The authors believe that they will get feedback and information about the Czech startup ecosystem from at least one tenth of the sector’s representatives. They will be approached directly to participate in the survey, but also through venture capital funds, business accelerators or innovation centres.
The Startup Act is perceived as a strategic step to strengthen the competitiveness of the Czech Republic. Its authors draw inspiration from successful examples from Spain, France and Romania. “We want to start a startup Czech Republic and for this mission we will use data directly from startups. The questionnaire we have just launched will help us get answers to questions that are crucial for startup entrepreneurs. Their suggestions will play a key role in the preparation of the final version of the Startup Act, the first ever comprehensive legislation dedicated to the development of the startup environment in the Czech Republic. We are also gathering inspiration for its preparation from a number of neighbouring European countries where similar models work well,” says Martin Jiránek, chairman of the Czech Startup Association.
Startup law is a strategic priority
Startups have become an increasingly important part of the Czech economy in recent years. According to State of European Tech 2024, investment in venture capital in the Czech Republic amounted to approximately 0.07% of GDP. “Startups and innovative companies are a source of innovation, technological progress and new jobs. Our government is creating the conditions to help them succeed even more. The creation of the first Startup Act is another important step towards modernising the business environment in the Czech Republic, following the new employee share scheme that will come into force in January. I believe that thanks to data and information directly from entrepreneurs, we will create legislation that meets their real needs,” says Prime Minister Petr Fiala.
Unlike traditional industries, startups often face specific problems that are not taken into account by existing legislation. Their business model is based on rapid growth, high levels of risk and working with investment capital. This brings with it different needs from those of established companies, be it flexible employment law, the ability to incentivise employees through employee shares or access to finance in the early stages of the business.
In the current system, however, startups are forced to operate in conditions set primarily for traditional and long-established businesses. This leads to many companies looking for a more favourable environment abroad, where startup laws already exist and provide clear rules and targeted support. Preparing a quality startup law that responds to the current challenges is one of our key priorities. In line with the Economic Strategy: the Czech Republic to the Top 10, which I presented when I took office, we want startups to find conditions in the Czech Republic comparable to the best countries in Europe and not have to look for opportunities abroad. Without their systematic support and development, it would be difficult for the Czech economy to compete internationally in the coming years.” comments Ministerof Industry and TradeLukášVlček.
International context: the Czech Republic is still lagging behind
In its latest report for 2024, the European Startup Alliance (ESNA) ranked the Czech Republic 20th out of 24 active members in its assessment of the fulfilment of European Startup Nations standards. This shows that the Czech environment faces a number of challenges and it is necessary to take systemic measures. However, in recent years the government has been improving conditions for young innovative companies. The creation of the Startup Act is another systemic step towards creating a stable and competitive environment for the development of technology companies in the Czech Republic, after the new employee shareholding regime, which will come into force in January, or the tax exemption on the sale of companies. Startup issues are gaining an increasingly strong institutional background in the Czech Republic. The Subcommittee on Startups, Science, Research and Innovation has been established in the Chamber of Deputies and is the third largest subcommittee of the Economic Committee in terms of the number of members. The Investor and Startup Coordination Council is also playing an active role in the implementation of the European Startup Nations Standard, to which the Czech Republic signed up in 2021. It is this coordination between the state administration, investors and the startup community that experts say is starting to have a major impact and tangible results.
Source: the CzechInvest Agency
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