Startups in Europe or in the U.S. Advantages and Disadvantages

Startup Europe US Dilemma Puzzle

Where startups can grow better?

The current situation suggests the Silicon Valley as the favorite environment for growth, but entrepreneurs should consider advantages that Europe offers in order to open startups in selected EU countries.

The relationship between Europe and the U.S. is solid. It accounts half of the global GDP and one third of trade according to The Economist. Experts’ predictions aren’t bringing Europe any good news for 2013. While the U.S. is expected to grow, Europe’s future is still uncertain due to the deep recession that doesn’t leave since a couple of years. There are still hopes for European entrepreneurs, who might decide to open a company in the “old continent”. This comparison hereby may help the decision.

Startups in the U.S.
Culture of entrepreneurship is higher. Americans tend to merge technology with innovation into a friendly bureaucracy procedures environment.
One of the biggest advantages is the unified language, and the extraordinary similarities that match from est to west. The Silicon Valley, in particular, is giving great hope to anyone with an idea, making many companies popping up like flowers in spring. Simplicity of building up startups brings the disadvantage, rapid growth, but unstable, if not supported with strong business models and, foremost, investments.

Startups in Europe

Europe faces with more than 20 languages, vary cultures and different bureaucracies for opening a company. Taxation rules are different from country to country. In Italy, for example, opening a startup takes double money and time compared to the U.S. Easier procedures are in Australia and New Zeland, according to DoingBusiness. org, so choosing for labeling your company with an American flag is still not the most convenient solution. Let’s try to find the positive perspective. A business can grow faster throughout European countries. Every division must be oriented to international business mindsets, unified with an international English, plus the native language for each country. With the right people in the team and with a strong organizational centralized model, leading a European company is a challenge that could reveal the highest victory. If you are able to manage a company in Europe, well, there is no other obstacle for your future. The disadvantage are a weak business model and lack of communication between the international teams.

Tip&tricks : How to break the barriers between Europe and the U.S.? Real time outsourcing.

One of the possible answers is real-time outsourcing. Working processes can be commissioned to specialists in cheaper countries in Asia.
Many startups are dealing with technological products, and systems. This factor helps tremendously real time outsourcing. An example. The architecture of a software system requires a team of IT engineers, that could work from anywhere in the world with an internet connection. After deciding your project leaders, who will stay in the headquarters of the company, you can build up a team coming from wherever in the world is cheaper. You can make your IT masters follow the development from the distance in real time and pay the effective work.

Europe reveals much more opportunities than you expect, also for the growth of your startup. So dear European entrepreneur, you must accept the challenge and remember that, no matter the result, at least you have tried.


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