The European Commission has launched a strategy to promote and develop small technology start-ups (start-ups) as part of the broader “Choose Europe” initiative aimed at competing with China and the US, Euronews reported.

The document sets out key actions to help companies establish and grow in the EU, including easier access to finance and infrastructure and reducing administrative burdens.

Currently, around 8% of start-ups worldwide are based in Europe.

A report by former Italian Prime Minister Mario Draghi published last year found that 61% of global funding for artificial intelligence companies goes to US-based companies, 17% to Chinese companies, and only 6% to EU companies.

To bridge this gap, a fund based on a public-private partnership will be set up by the beginning of next year to encourage start-ups to expand their activities.

“Capital matters, and Europe has it. We need to connect it with the needs of innovators,” said European Commissioner for Startups, Research, and Innovation Ekaterina Zaharieva when presenting the strategy.

“There is still a clear lack of funding—to address the main challenges and reduce market fragmentation, we will join forces with private investors,” she added.

The Commission also aims to simplify the rules for setting up a start-up within 24 hours and enable companies operating in the 27 different EU Member States to comply with a single set of business rules.

The proposal also plans to reduce the costs of failure for start-ups by addressing insolvency issues.

“We have 30,000 start-ups in the early stages of development. We don't lack ideas, we need a plan to maximize the potential,” Zaharieva said. | BGNES