The word “startup” is not new in the minds of many people. Talking about startup, they imagine a company at its first stage of business. In the blooming technology era, startup has occurred much more popularly than ever before.
Startups bolster innovation and creation.
Photo source:https://quasa.io/media/scaling-early-stage-startups-the-how-s-and-why-s
When one or more than one businessman builds up his/her company for goods and services creation to meet market demands, startup is the most crucial phase that brings innovation, creation, construction and realization of ideas, deciding the company’s success. In the modern world, there are various models of startup, from SMEs startup, big startup, rebuyable startup, etc. The SMEs startup is popular; businesses made by ordinary people aim at running business, owning business ideas and capital to make real their business ideas. Such business models as opening agents, shops (for foods and beverages, bakery, spa, etc.), small groceries, etc. are concrete examples to the SMEs startup. The big startup normally ties with big companies in implementing design ideas for creative products meeting clients’ demands. Expandable startup mostly goes with the technology sector as its accessibility to the global market and fundraising from investors, developers. Companies such as Uber, Grab, Facebook, etc. are outstanding examples for that type of startup. The rebuyable startup is close to software development, tech, when the founders do startup with their ideas of software and tech development and then sell their startups to other bigger companies in the same sector. Big companies such as Amazon, Microsoft, etc. rebuy those startups to continue developing and gain profits in return.
Startups in the USA. Photo source:https://www.forbes.com/sites/zackfriedman/2017/03/01/startups-best-funded/?sh=67954a1a768f
In fact, at many countries, startup has been encouraged and facilitated by governments for development. Reasons are obvious that startups tie with new ideas, innovative and creative activities that benefit not only consumers, suppliers but also vitality, competition, human resource quality, job creation, socio-economic outcomes, and enhance national influence. The USA, which is well-known globally not only with its development and worldwide influence, but also with massive presence of successful and globally-influence-making startup forces, such as Facebook, Google, Microsoft, etc.
In the 21st century, thanks to the unstoppable bloom of science and informative technology, startup has gone well with science and tech that is a commonly essential trend in the world. It may be said that startup activities have been as favorable as ever before. In fact, it only needs ideas carrying eco-social benefits, founders/ideas owners are able to call on investment from different channels, either physically or non-physically, accessibility to international investors/developers fast and conveniently. Indeed, founders/ideas owners can participate in physical channels for investment calling that is through domestic incubators, or directly register on digital websites for calling investment. Such websites are born to connect the fastest, most convenient those who get interested in; they also help save time and cost, geographic distance is now not an obstacle to development opportunities of business ideas. Another good point is that, within development and high application of informative technology, only ideas need to be good to meet human demands, startup is an opening step to founders/ideas owners’ further chances and success.
Startup centers in EU. Photo source: https://knowledge4policy.ec.europa.eu/visualisation/number-startups-eu_en
Acknowledge significant role of startup to nationally eco-social and influencing scale, many countries have deployed policies and measures to boost startup activities. For example, in the USA, which is leading country in the world regarding business startup, White House issued “Startup America” initiative (during Barack Obama’s period) that inspired and promoted entrepreneurship across the country, implementing public – private cooperation among enterprises, companies, finance funds, universities, and federal state agencies, in order to facilitate growth and success of American enterprises. Purpose of the initiative “Starup America” was to increase quantity and quality of companies, create more quality jobs, stimulate economic growth, innovation; honor entrepreneurship in Americans, inspire startup spirit to all American communities. Thereby, many measures have been implemented by the White House to bolster startup spirit. Among those measures, it was an annually financial sponsorship of about $148 billion to R&D activities in many industries; expansion of cooperation among big companies and startups; operation of consultancy and education of startup spirit; identification and solutions to unnecessary barriers impacting startup[1].
In Europe, startup initiative and scaling has brought opportunities to enterprises with innovative spirit. Indeed, idea of activities gathering to create a stricter framework allowing startup develop and run business across Europe, notably: i) reform of finance approaches (implementation of inter-Europe Venture Capital Fund, European Fund for strategic investment EFSI, European Program for SMEs - COSME, Funding Program for European innovation and research Horizon 2020); ii) second opportunity to enterprises thanks to proposal of Directive of the European Parliament and Council on a framework of prevention restructure, second chance and measures enhancing efficiency of restructure, bankruptcy proceedings and dissolution, and amendment of Directive 2021/30/EU[2] to allow companies facing financial difficulties to soon restructure to avoid bankruptcy and employee lay-offs; iii)taxation simplification to the Common Consolidated Corporate Tax Base (CCCTB) to support SMEs expand business in territories of EU’s countries, plans on simplifying VAT system of the EU, etc.
Singapore, one of the leading countries in stimulation of business startup incubation. Photo source: https://www.relocatemagazine.com/news/singapore-tops-global-city-rankings-again-dsapsted-0221
In Southeast Asia, Singapore, as one of the leading nations in startup ideas operation, has launched many policies and measures to push up the country toward strong development of the startup ecosystem. Catch up competition attracting talent enterprises across the world, Singapore issued “Startup SG” (3/2017) unify all mechanisms supporting startups in Singapore, providing loans, subsidies, sponsorship, capacity enhancement for startup companies in Singapore; improving evaluation criteria of EntrePass Program that facilitates global business talents enter Singapore[3]…Besides, Singapore has applied measures such as budget moderation to incubators, corporate income tax incentives to encourage business startup spirit in Singapore.
In Vietnam, policies supporting startups have been modest. SMEs Law 2017, Resolution no. 39/2018/NĐ-CP dated 11/3/2018 regulates in detail SMEs supporting Law has regulations on taxes, investment, interest rate compensation; but SMEs Law 2017 has yet regulated specifically taxation policy to innovative SMEs startups.[4]Indeed, enterprise income tax applied for innovative SMEs startups have still bear a taxation 20% that is the same to other enterprises[5]. Resolution no. 39/2018/NĐ-CP regulates certain offers to innovative startup enterprises (Article 21): i)support consultancy on intellectual, exploration and development of intellectual assets; ii) support implementation of regulations on standards, technique standards, measures, quality, experiment, accomplishment of new products, new economic models; iii) support education, information, commercial promotion, commercialization; iv)tech application and transformation support; iv) support usage of technical units, incubators, and common working areas[6].To be able to enhance startup spirit, encouraging enterprises innovate, detailed measures on policy making such as drafting and implementing tax incentives to innovative SMEs, policies on financial assistance to innovative SMEs, measures on public – private – academic (universities) connection, and enhancement of incubators development are needed.
In present, Scheme “Support the national innovation startup ecosystem until 2025” issued at Decision No. 844/QĐ-TTg dated 18/5/2016 focusing on supporting intermediary organizations which support startup, business accelerators, investment for innovative startup, service provision units to innovative startup, telecommunication units for innovative startup, universities or educational bases for innovative startup. In Hai Phong, implementing the Scheme “Support the national innovation startup ecosystem until 2025”, the City People’s Committee launched a plan on innovative startup ecosystem development in the City by 2020 (at Decision No. 1394/QĐ-UBND issued on 05/6/2017). By now, many activities such as conferences, forums, competitions relating to innovative startups, modern infrastructure for startups, education and consultancy for startups, or enterprise connections, have been implemented to support startup ecosystem development in the city./.
[1]https://obamawhitehouse.archives.gov/startup-america-fact-sheet
[2]https://ec.europa.eu/information_society/newsroom/image/document/2016-48/proposal_40046.pdf
[3]https://www.singaporecompanyincorporation.sg/blog/13-startup-schemes-and-grants-in-singapore/
[4]https://thuvienphapluat.vn/van-ban/doanh-nghiep/luat-ho-tro-doanh-nghiep-nho-va-vua-2017-320905.aspx?v=d
[5]https://thuvienphapluat.vn/van-ban/doanh-nghiep/luat-thue-thu-nhap-doanh-nghiep-sua-doi-2013-197250.aspx?v=d
[6]https://thuvienphapluat.vn/van-ban/doanh-nghiep/nghi-dinh-39-2018-nd-cp-huong-dan-luat-ho-tro-doanh-nghiep-nho-va-vua-366561.aspx?v=d