Management and Business
e-ISSN 3041-2420 | UDC 33
|
EN
Submit an article →
← Vol. 3, No. 2, 2025

Development of startup ecosystems in Ukraine and the European Union: Challenges and opportunities

Rodion Sevastyanov ORCID
National University “Zaporizhzhia Polytechnic”

Abstract

The relevance of the researched problem is determined by the role of startup ecosystems as key drivers of innovation and economic development, fostering technological progress and addressing global challenges through sustainable practices and entrepreneurial activity. The article aimed to analyse the challenges and opportunities for the development of startup ecosystems in Ukraine and the European Union, with emphasis on their comparative strengths, barriers, and growth strategies. To achieve this aim, comparative analysis, a systems approach, and the synthesis of data from official reports, academic sources, and industry surveys were applied. It was found that the EU has a mature, diverse, and well-funded ecosystem with leading hubs in Berlin, Paris, and Amsterdam, supported by institutional programmes such as Horizon Europe. The EU ecosystem was shown to grow from around 60,000 startups and 50 unicorns in 2020 to 75,000 startups and 110 unicorns in 2023, with investments amounting to approximately $20 billion. In contrast, the Ukrainian ecosystem was characterised by dynamism and significant IT expertise, with 30% of startups concentrated in Software/SaaS and 15% in FinTech, but its development was constrained by political instability, limited access to capital, and challenges in scaling to global markets. It was established that the agility and innovative capacity of Ukraine’s technology sector can complement the EU’s structured markets and regulatory framework. Mutual benefits were highlighted through the combination of institutional support and market access with Ukraine’s resourceful and cost-effective talent pool. 
Emerging sectors such as GreenTech, AI, and FinTech were identified as promising areas for collaboration, while cross- border cooperation, coherent policies, and targeted investments were emphasised as crucial strategies for sustainable growth and resilience. The practical significance of the research lies in its applicability for policymakers, investors, and entrepreneurs in designing strategies to foster collaboration, enhance startup ecosystem development, and unlock the economic potential of partnerships between Ukraine and the EU 

Keywords:
economic development; innovation; technology; venture capital; entrepreneurship; collaboration

References

  1. Alonso, S.M. (2024). The “startup galaxy”, a €100 billion sector looking for its place in the Spanish economy. Retrieved from https://cincodias.elpais.com.
  2. Balodis, I. (2024). European Union cultural attitudes towards entrepreneurship: The impact of societal norms on startup ecosystems. SSRN. doi: 10.2139/ssrn.4859177.
  3. Blockchain Observatory & Forum: Conclusion report. (2024). Retrieved from https://blockchain-observatory.ec.europa.eu.
  4. Booster Labs. (2024). ExcellEnt: Excellency in entrepreneurship: Expanding European entrepreneurship by boosting youth (self) employability and promoting a sharing-resources culture. In Compendium of interview with entrepreneurial ecosystem stakeholders (Deliverable D1.1). Greece: Institute of Entrepreneurship Development.
  5. Civitta. (2025). Scaling up: Accelerating Ukraine’s tech sector. Retrieved from https://civitta.com.
  6. Consortium of Ukraine’s leading ecosystem players team up to launch startup database. (2020). Retrieved from https://dealroom.co.
  7. Digital Europe Programme. (n.d.). Retrieved from https://digital-strategy.ec.europa.eu.
  8. Digital Tiger 2024. (2025). The market power of Ukrainian IT – 2024: A research on the prospects of Ukrainian IT in key global export markets. Retrieved from https://itukraine.org.ua.
  9. Diha, M., Diha, V., & Honta, S. (2024). Development of the startup industry in Ukraine: State, challenges, and prospects. City Development, 2(02), 45-54. doi: 10.32782/city-development.2024.2-6.
  10. Duma, O., & Zavtura, K. (2021). Startup ecosystem in Europe: Best practices and lessons for Ukraine. Management and Entrepreneurship in Ukraine: The Stages of Formation and Problems of Development, 3(1), 119-130. doi: 10.23939/smeu2021.01.119.
  11. EIIT. (2023). New innovation hub opens in Ukraine: EIT continues to strengthen support for Ukrainian innovators. Retrieved from https://www.eit.europa.euh.
  12. European Commission (n.d.a.). EU research and innovation framework programme. Retrieved from https://research-and-innovation.ec.europa.eu.
  13. European Commission (n.d.b.). European Green Deal: Striving to be the first climate-neutral continent. Retrieved from https://commission.europa.eu.
  14. European Innovation Scoreboard. (2025). Retrieved from https://research-and-innovation.ec.europa.eu.
  15. Font-Cot, F., Lara-Navarra, P., & Serradell-Lopez, E. (2023). Digital transformation policies to develop an effective startup ecosystem: The case of Barcelona. Transforming Government: People, Process and Policy, 17(3), 344-355. doi: 10.1108/TG-01-2023-0006.
  16. GitLab. (n.d.). Retrieved from https://gitlab.com.
  17. Global Innovation Index. (2025). Retrieved from https://www.globalinnovationindex.org.
  18. Grammarly. (n.d.). Retrieved from https://www.grammarly.com.
  19. Greenacre, M. (2025). EU start-up strategy gets warm welcome, but now founders want action. Retrieved from https://sciencebusiness.net.
  20. Horban, S., & Bilenko, O. (2025). Business ecosystems in Ukraine: Status and development prospects. Social Development Economic and Legal Issues, 4. doi: 10.70651/3083-6018/2025.4.15.
  21. How European tech hubs are shaping the global economy. (2025). Retrieved from https://europeanbusinessmagazine.com.
  22. Karpenko, A.V., & Sevastyanov, R.V. (2022). Development trends of the cluster movement in the economy of Ukraine. Economic Herald of State Higher Educational Institution “Ukrainian State University of Chemical Technology”, 2, 144-157.
  23. Kharchuk, T., Klymenko, K., Shkolenko, O., & Melnik, V. (2025). Reproduction of business potential in Ukraine amidst war challenges and the European integration vector. Academy Review, 1(62), 7-19. doi: 10.32342/3041-2137-2025-1-62-1.
  24. Klarna. (n.d.). Retrieved from https://www.klarna.com.
  25. Kokhan, M.O., & Mazur, A.V. (2019). Regional determinants in the development of the Lviv startup ecosystem. Regional Economy, 94(4), 74-86. doi: 10.36818/1562-0905-2019-4-6.
  26. Kolodiziev, O., Gukaliuk, A., Shcherbak, V., Riabovolyk, T., Androshchuk, I., & Pas, Y. (2024). The impact of refugee startups on host country economies: Business models and economic adaptation. Economic Studies, 33(2), 175-201.
  27. Kumari, R., Verma, J., Verma, R., & Arya, V. (2025). Flying high with entrepreneurial ecosystems – a systematic literature review to determine the factors of entrepreneurial ecosystem development. Business Strategy and the Environment. doi: 10.1002/bse.70140.
  28. Kuzior, A., Pidorycheva, I., Liashenko, V., Shevtsova, H., & Shvets, N. (2022). Assessment of national innovation ecosystems of the EU countries and Ukraine in the interests of their sustainable development. Sustainability, 14(14), article number 8487. doi: 10.3390/su14148487.
  29. Larosa, F., Mysiak, Ja., Molinari, M., Varelas, P., Akay, H., McDowall, W., Spadaru, C., Nerini, F., & Vinuesa, R. (2023). Closing the gap between research and projects in climate change innovation in Europe. arXiv. doi: 10.48550/arXiv.2303.17560.
  30. Law of Spain No. 28 “On the Promotion of the Emerging Companies Ecosystem (Startup Law)”. (2022, December). Retrieved from https://one.gob.es/en/startups-law.
  31. Loi, A. (2023). Identification of investment attraction strategies to increase the economic potential of a trading enterprise. Economics, Entrepreneurship, Management, 10(1), 8-16. doi: 10.56318/eem2023.01.008.
  32. Lukianenko, I.G., & Sova, Y.S. (2024). Assessing competitive advantages and challenges of the Ukrainian tech ecosystem during wartime. Problems of Economy, 2(60), 264-271. doi: 10.32983/2222-0712-2024-2-264-271.
  33. Menshikov, V., Ruza, O., Simakhova, A., & Semeneca, J. (2024). Development of start-up ecosystems in selected countries with a focus on the cases. Entrepreneurship and Sustainability Issues, 12(1), 411-429. doi: 10.9770/jesi.2024.12.1(27).
  34. Origine.bio. (n.d.). Retrieved from https://origine.bio/fr.
  35. Primario, S., Rippa, P., & Secundo, G. (2024). Peer innovation as an open innovation strategy for balancing competition and collaboration among technology start-ups in an innovation ecosystem. Journal of Innovation & Knowledge, 9(2), article number 100473. doi: 10.1016/j.jik.2024.100473.
  36. Revolut. (n.d.). Retrieved from https://www.revolut.com.
  37. Schrijvers, M., Stam, E., & Niels, B. (2024). Figuring it out: Configurations of high-performing regional entrepreneurial ecosystems in Europe. Regional Studies, 58(5), 1096-1110. doi: 10.1080/00343404.2023.2226727.
  38. Skawińska, E., & Zalewski, R.I. (2020). Success factors of start-ups in the EU: A comparative study. Sustainability, 12(19), article number 8200. doi: 10.3390/su12198200.
  39. Slush. (n.d.). Retrieved from https://www.slush.org/about-us.
  40. South Summit. (n.d.). Retrieved from https://www.southsummit.io/about-us/South Summit.
  41. Startup Grind. (n.d.). Retrieved from https://www.startupgrind.com/events.
  42. Tkachenko, A.M., Chernysheva, O.M., Sevastyanov, R.V., & Krainik, O.M. (2020). An economical significance of energy saving as a component of the strategic development of the Ukrainian enterprises. International Journal of Advanced Science and Technology, 29(6s), 1050-1056.
  43. Tropina, V., & Yevtushenko, N. (2023). Innovative development of Ukraine in the context of European integration processes. University Economic Bulletin, 18(4), 41-49. doi: 10.69587/ueb/4.2023.41.
  44. Web Summit. (n.d.). Retrieved from https://websummit.com/startups.
  45. Zaikin, A. (n.d.). Scaling Ukrainian startups in wartime: Lessons in resilience and innovation. Retrieved from https://startupsmagazine.co.uk.
  46. Zavarská, Z., Bykova, A., Grieveson, R., & Guadagno, F. (2024). Toward innovation-driven growth: Innovation systems and policies in EU member states of Central Eastern Europe.  Research Report No. 476. Vienna: The Vienna Institute for International Economic Studies.
  47. Ziakis, C., Vlachopoulou, M., & Petridis, K. (2022). Start-Up Ecosystem (StUpEco): A conceptual framework and empirical research. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), article number 35. doi: 10.3390/joitmc8010035.

Suggested citation

Sevastyanov, R. (2025). Development of startup ecosystems in Ukraine and the European Union: Challenges and opportunities. Management and Business, 3(2), 51-65. https://doi.org/10.59214/mb/2.2025.51