New companies Tracing South Tyrol's founders
For a market economy, the birth and death of companies is an absolute necessity. The aim of this study is to examine and understand this regeneration in South Tyrol (its extent, who are the founders, what are their needs?). Based on these analyses, conclusions should be drawn, especially regarding economic policy. The study is based on four pillars: Firstly, on the registrations and deletions of the Commercial Register, secondly on international comparative data, thirdly on the information and experiences of the business start-up service of the Chamber of Commerce and fourthly on the most important source, which is the personal survey of 206 business founders.
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Highlights: •
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Every year, around 2,300 companies are registered in the Commercial Register. 78% of these new registrations are foundations: 50% new start-ups and 28% takeovers. Most of the founders are taking the step into selfemployment for the first time. The remaining registrations in the Commercial Register are mostly changes in the form of existing companies, which, however, require the deletion of the old and the registration of a new company (e.g. change of legal form). During their "critical" start-up phase, young companies are much more at risk of being forced out of the market
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than established companies. In South Tyrol, the survival rate (share of companies that still exist 5 years after their foundation) is between 68 and 78%, depending on the economic situation. Compared to other regions, the survival rate of start-ups in South Tyrol is relatively high. Team foundations have a high survival rate and usually develop more dynamically. If the company is founded as an additional business rather than as a main one, it is often given up because of entrepreneurial difficulties. According to the founders, the most important requirements for a successful business start-up are hard work and perseverance, comprehensive information gathering and market analysis as well as precise planning and calculation. The self-employment has a very positive image: the majority of the family members welcomes the step into self-employment and over 80% of the founders would take the step into self-employment again. The majority of the founding companies show a steady turnover and employment development. A smaller group of companies with particularly dynamic turnover and employment contributes significantly to the positive employment effect. In the years from 1998 to 2001, more companies were founded than deleted in all sectors of the economy: the start-up dynamics in the construction and services
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industries were particularly strong. The founding structure largely corresponds to the traditional sector distribution. In the further course of business, capital, space and personnel recruitment will become more difficult for the founders. A quarter of the individual companies are founded by women who prefer the service sector. The majority of the founders have considerable experience in the industry, while the other qualification aspects, such as knowledge of business management and experience abroad, show strong differences between the industries. “To be one's own boss", the realization of the own ideas, proof of efficiency and the desire for a higher income are the most important driving forces for the step into self-employment. Except for the last one, most of these goals have been fully achieved. The business and tax consultant is an important point of contact for the founders. The business start-up service of the Chamber of Commerce of Bolzano is a new building block in the advice for founders, which is very well received. 40% of the founders have made an effort to obtain public funding.
Practical approaches • • •
Increasing advice for start-ups in the areas of information, planning and calculation; Increased support for women and team start-ups; Promotion and support of start-ups in new and highrisk sectors.