ŠAVŠ/TAČR Digital Czechia in a Digital Europe


provision of capital for the launch of startups from public funds. In addition to supporting startups at the governmental level, the conditions on the basis of which it is possible to establish and operate a business entity in the relevant Member State also play a crucial role in the creation of startups. Equally important is the tax burden of the business entity or the average wage level. For successful support of startups, it is also very important to eliminate various administrative barriers that fundamentally limit legal business activities. Startups bring enormous economic potential. For this reason, it is very desirable to support their creation in the Czech Republic. Although this form of business is very risky and many business plans and intentions may not always succeed, there are a number of major corporations that were first created as startups and in a very short time used the potential for their exponential development. Initially, viable startups need resources for their launch and subsequent development. Once the startup enters its expansion phase, the public funds will be returned to the economy through increased collection of direct and indirect taxes, including social security and health insurance contributions. Given the specificity of startups and the difficult access to financial resources intended for the development of innovative business plans, individual member states of the European Union support the creation of startups and enable them to implement the intended business plan. The purpose of all support is to increase economic growth in individual EU Member States and create new jobs that will reduce unemployment in the EU. Last but not least, new companies bring with them the potential for higher collection of direct and indirect taxes to the budget of individual EU countries and subsequently to the budget of the European Union. In the European Union, entrepreneurship support is the focus of the Entre- preneurship 2020 Action Plan, which aims to identify and focus on three key areas that aim to develop entrepreneurship in the EU.: • business education • removal of administrative barriers related to the establishment of a business and its activities • strengthening the business culture in individual EU member states and supporting a new generation of entrepreneurs. SUPPORTING BUSINESS IN THE EUROPEAN UNION

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