Why does Sweden produce so many startups? – World Economic Forum – Medium

Interesting #fintech #Insurtech #AI #startups

Why does #Sweden produce so many #startups?

  • What do Spotify, Minecraft and Candy Crush Saga have in common?They were all made in Sweden.Skype was co-founded by Swedes and SoundCloud started in Stockholm before moving to its current home in Berlin.Sweden is home to Europe’s largest tech companies and its capital is second only to Silicon Valley when…
  • The rollout of this fiber-optic infrastructure has been directly financed by the Swedish government in rural areas, and heavily subsidized everywhere else.It isn’t the first time the government has funded a mass rollout of technology: in the 1990s it subsidized households to buy PCs, which academics claim meant there was…
  • And while the tax level is listed by The Global Competitiveness Report 2017 as the most problematic factor when doing business in Sweden, the government’s minister for enterprise and innovation Mikael Damberg claims the country’s social safety net means entrepreneurs are more free to take risks.Sebastian Siemiatkowski, CEO of Klarna,…
  • The Swedish government is even seeking to address tech companies’ concerns that high income tax levels make it difficult to attract global talent.It is doing this by lowering taxes on startup stock options — a common method of compensation by new companies that want to attract the best talent but cannot compete…
  • Equally, employees are more likely to be collaborative when they trust their colleagues.The paper points out that trust among employers is more likely to be high when trust in the wider economy is high.A strong level of trust is deeply rooted in Swedish culture, which may explain why so many…

Skype was co-founded by Swedes and SoundCloud started in Stockholm before moving to its current home in Berlin. Sweden is home to Europe’s largest tech companies and its capital is second only to…

What do Spotify, Minecraft and Candy Crush Saga have in common?They were all made in Sweden.Skype was co-founded by Swedes and SoundCloud started in Stockholm before moving to its current home in Berlin.Sweden is home to Europe’s largest tech companies and its capital is second only to Silicon Valley when it comes to the number of “unicorns” — billion-dollar tech companies — that it produces per capita.Image: StatistaWhy has Sweden proven so successful in encouraging digital entrepreneurs to start and grow new businesses?One counter-intuitive and somewhat controversial answer is its high levels of taxation.Taxing economyDespite research showing that countries with large government and high tax-and-spend tend to be less entrepreneurial, Sweden’s tech businesses have benefitted from both the social and physical infrastructure that such an approach can provide.When it comes to average internet speeds, the country is only bettered by its neighbour Norway and South Korea.More than 60% of the country has access to super-fast fiber-optic broadband with speeds of 100 megabits per second, and the Swedish government wants that figure to rise 90% by 2020.The rollout of this fiber-optic infrastructure has been directly financed by the Swedish government in rural areas, and heavily subsidized everywhere else.It isn’t the first time the government has funded a mass rollout of technology: in the 1990s it subsidized households to buy PCs, which academics claim meant there was soon a computer in nearly every Swedish home.Sebastian Siemiatkowski, founder and CEO of $2.5 billion ecommerce startup Klarna, credits this “visionary” policy as the reason he was able to…

Why does Sweden produce so many startups? – World Economic Forum – Medium