The Danish government has taken many steps to make Denmark an attractive place for investment and new business ventures. It has forged private-public partnerships for research, communications and information technologies to help build a solid infrastructure and encourage growth in the private sector.
- 14,000 and 18,000 new businesses are set up in Denmark each year
- This is on a level with the best performing entrepreneurial countries.
- start-ups make up approximately 10% of the total number of enterprises in Denmark.
- The Danish start-up rate is higher than other European countries, such as Sweden and Finland
- Only around 5% of Danish entrepreneurs achieve a particularly high growth rate in turnover or employment within the first few years. In the leading countries, this figure is three times as high.
- TV shows as “Denmark’s best idea” promote entrepreneurship and idea generation
- Many schools promote entrepreneurship
- Both business schools and technical schools
- Also shorter courses promote entrepreneurship
- Entrepreneurship has evolved in Denmark the last ten years
- During the level of new startups was low
- The number of Venture capitalists has increased since 1998.
- Today there are about 50 venture capital companies on the market
- The Danish venture capital market has experienced continuous growth since 1998
- The sectors of Life Sciences and ITC are the two major recipients of venture capital
- The majority of investments are allocated to projects in the Greater Copenhagen region
- Governmental initiatives will boost early stage capital for pre-project and seed capital to entrepreneurs.
- TEA Index 5.31 (Global Average 9.74, European Average 5.4)
- TEA Ranking 21st out of 32 ( European 8th out of 17)
- High level of Opportunity Entrepreneurship v. Necessity (only Iceland and Belgium have higher ratios – Denmark ratio is 13.6)
Danish Global Competitiveness
- Danes focus on knowledge to compete with the rest of the world, know that they will never be the low cost provider
- Key Industries include: Life Science (BioTech and MedTech), Information and Communications Technology, Renewable Energy and high Tech Manufacturing and Engineering
- Idea concerning the “flexible” Danish labor market that has lead to current low levels of unemployment, gives a great deal of latitude to business compared to other European countries
- Danes pay high personal taxes, but are provided with generous unemployment
- Roughly 1 out of 5 Danes will lose their jobs in a given year, but most find new jobs quickly
Intrapreneurship v. Entrepreneurship
- Intrapreneurship entails business creation within larger business or as spin-off business units
- In 2004 48% of new ventures in Denmark were part intrapreneurial, only Hong Kong has a higher rate (51%)
- Dri9ven by significant freedoms that Danes enjoy in the workplace
- Allows workers to be involved in new ventures without bearing significant tax burden and help drive economic growth even though traditional entrepreneurial levels are low
Danish Venture Capital and Incubators
- Danes have good access to Angel and Start-up capital, but later funding is hard to come by. This trend is beginning to lessen, as more VC firms focus on fewer companies
- Key Incubators and VC: NOVI Innovation, Symbion Management, SEED Capital
- Support organizations include: International Danish Entrepreneurship Academy (IDEA), Invest in Denmark, Ministry of Finance and the various trade commissions
Entrepreneurship Review of Denmark
Denmark: Promoting Entrepreneurship
The Healthcare Situation in Denmark
Conditions for Growth in Denmark – Danish Growth Strategy – A Complete Guide for Business in Denmark
Danish Industry Strongholds
Denmark’s Business Angels
Denmark – Executive Business Report
Visa and Passport
White Papers – New Opportunities in Denmark
Find a Niche an Fill It
Open Minds Opens New Doors to Business Innovation and Return on Human Capital
The Role of Entrepreneurship in European and US Job Growth