I often read that EU is incredibly bureaucratic and risk averse. On the other hand, I also read stories how startups can successfully bootstrap themselves via generous support of the government, like tax deduction for small companies, unemployment benefits for founders, low-interest loans, venture investment, free mentorship by very experienced and connected executives, and etc. The stories about French and Denmark companies are especially impressive. So, I was wondering if there's a difference between the governments of individual countries in EU and the EU government.
> On the other hand, I also read stories how startups can successfully bootstrap themselves via generous support of the government, like tax deduction for small companies, unemployment benefits for founders, low-interest loans, venture investment, free mentorship by very experienced and connected executives, and etc.
I’m not seeing EU grants in that list. In general I’d say anything the bureaucrats can’t ruin with their gatekeeping, friendship corruption and overvaluation of social status is a positive. Anything they can ruin they will.
I know people who've taken money through these routes. The biggest surprise is the paperwork; since it's public money, everything must be fully transparent, and the government needs to justify why funds went to a specific person / entity.
In contrast, private investors have more discretion and fewer stakeholders to answer to.
You could go on unemployment and cost them for a year or two, and they instead subsidize you starting a business for 6-12 months to the same amount. Worst case, you fail, and they spent the same amount they would have nevertheless.
Low-interest loans you won't get without taking on personal liability for your business loan. It's low-cost capital, but it's also low risk.
Tax-delays/exemptions for small companies isn't a big bet, it's risking a fraction of a fraction of a percent.
Venture investments by the government is rare (for good reasons, it'd be a huge opportunity for corruption).
