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1. Fostering innovation and entrepreneurship is
a national policy priority in the vast majority
of Member States. This is due to the perceived
beneficial impact of entrepreneurship on economies,
including job creation; fuelling economic growth and
investment; and boosting competitiveness in the
globalised knowledge economy.
2. In 17 Member States, attracting innovative entrepreneurs and start-ups from non-EU countries forms
part of a general strategy to promote a vibrant
entrepreneurial culture. In the rest of the Member
States, although fostering innovation and entrepreneurship is a general priority, they do not focus on
attracting entrepreneurs from third countries.
3. Thirteen Member States have specific admission
schemes in place (mainly residence permits and/
or visas) for start-up founders and innovative entrepreneurs from third countries. With the exception of
Ireland, Italy, the Netherlands, Spain and the United
Kingdom, the majority of the schemes are still in
their infancy, having been introduced in the last three
years.
4. A special visa and residence permit to admit
third-country national start-up employees currently
exists in Cyprus, Estonia, France and Portugal. In the
Netherlands, a pilot scheme for key personnel will be
introduced in 2020.
5. The design and set up of the start-up schemes
differ significantly across the Member States,
with a wide variation of admission conditions relating
to both the business and the start-up founder. Common to all schemes, however, is that they target a
specific type of business, i.e. those that are innovative,
scalable and/or with an added value for the national
economy and business environment.
6. From those thirteen Member States which have a
specific scheme in place, eleven Member States
require submission of a business plan. The
business plan typically includes information related
to the business activity, product or service, market
analysis and sources of financing, and is evaluated by
a special committee.
7. In 2018, the highest number of applications for
start-up schemes was recorded in Estonia (783),
followed by Spain (305); Lithuania (178); the Netherlands (127); Finland (108); Italy (92); Ireland (42)
and Cyprus (7). In terms of the number of residence
permits/visa issued, in 2018, the number was the
highest in the UK (1,160 entrepreneur long-term
visas issued and 315 graduate entrepreneur visas);
followed by France (524 ‘talent’ passports issued),
Estonia (422 visas and residence permits issued for
entrepreneurs or start-up employees), Spain (104)
and the Netherlands (92). The remaining eight Member States issued less than 50 permits each.
8. The existence of a special visa or residence permit to
facilitate the immigration of start-up founders and
innovative entrepreneurs from third countries has
been considered a good practice in some Member
States. Although most of the schemes are in their
infancy, having a specific admission channel is
considered to have helped to attract international start-ups and talent.
9. Member States without a specific scheme use
other channels to admit start-up founders.
Member States that do not have a specific start-up
scheme in place reported that they most commonly
admit start-up founders from third countries through
long-term visas and residence permits for self-employment and business activities;
followed by
employment and gainful activities; investor permits
and/or for the purposes of studies and research.
Due to lack of statistics, there is limited quantitative
evidence on the extent to which Member States
without a specific scheme are successful in attracting
innovative start-ups from third countries. Some qualitative evidence suggests that some Member States,
such as Germany and Sweden, attract entrepreneurial
individuals via existing admission channels.
10. One of the most important ‘pull’ factors for founders/
employees is the Member State’s start-up scene and
the presence of hubs and locations with well-developed ecosystems where start-ups can develop
and grow. Socio-economic factors at play include
cost of living, salary levels, housing and quality of life.
Cultural differences, however, are reported in some
Member States to act as a deterrent, for example,
due to third-country nationals not being used to the
business culture of the Member State.
11. Migration-specific incentives to attract start-up
founders and innovative entrepreneurs include:
online application systems, fast-track and shortened
processing times, reduced documentary requirements,
and assistance and support from relevant institutions
with the immigration process.
12. Access to funding and investments (e.g. micro-loans) is available for start-ups in most
Member States. Funding is available through both
state and private sector actors, often provided in
cooperation.
13. Common challenges in attracting start-ups and
entrepreneurs experienced at macro level by Member States include global competition for talent, comparable opportunities in domestic and other markets,
and lack of incubators and accelerators. Challenges
at micro level include burdensome administrative
procedures and lengthy application times
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