Startups turnover in Ida-Virumaa shows good results
According to the state fund that deals with the sector’s development, in 2022, the turnover of startups in the Estonian region of Ida-Virumaa grew by 373%. It amounted to more than 2 million euros. In comparison, in 2021, the amount was 500 thousand euros, and in the previous period – 1.4 million euros.
A total of 20 projects are registered in the region, Friedegggames is the largest from it. In 2022, experts assessed its turnover at 1.2 million euros. PROSW Analytics with an indicator of 500 thousand euros is in second place.
The region’s startups contributed 300 thousand euros in taxes to the state budget in 2022. This is 37% more than in the previous period. A total of 23 people carried out activities in this sector in the county.
BASIS ID and EFENCO projects paid the largest amount of employee taxes. They have contributed to the budget of 100 thousand euros each. BASIS ID employs only three specialists, but the startup includes another project with five people. EFENCO has eight employees.
Regional peculiarities of Ida-Virumaa
Ida-Virumaa is one of the country’s leading regions in terms of population. According to the profile fund, this county has all the possibilities to become an ideal place to open and successfully operate new business projects. With the necessary support, Ida-Virumaa could soon become a full-fledged competitor to Tallinn and the Pärnumaa region.
One of the benefits of Ida-Virumaa is people with experience in manufacturing companies and the field of technology. These specialists have the necessary skills to create and implement new projects. Their ideas require support both financially and through mentoring. Support from the state and private investors will stimulate the sector, encouraging more start-ups.
In Ida-Virumaa, the Startup Estonia business idea support program has existed for over four years. In 2022, the organization and the Ministry of Finance signed a cooperation agreement. According to the document, partners will allocate more than 661 thousand euros for the development of startups in the city within 3 years.
The Estonian government is interested in the emergence of new projects. It will strengthen the country’s economy in difficult times. The authorities are introducing programs to support companies. Some businesses have benefits. However, last year was extremely difficult for startups, as investors are in no hurry to invest large sums in conditions of market uncertainty. In addition, Estonia has been affected by the global trend of slowing growth in the technology sector. It is confirmed by the decrease in IPOs on American and European stock exchanges.