Analysis of Innovative Start-Up Companies – Case of Košice Region

Abstract

<p><strong>Purpose:</strong> Support policy for start-up companies is being developed nowadays in Slovakia, but so far there has hardly been any research focuses on this issue. Therefore, the aim of this article is to identify, what are the specific needs and funding sources of start-up companies according to their stage of development.<br /><strong>Methodology/Approach:</strong> This paper used questionnaire empirical approach. The research was conducted in the Košice region. The sample of 47 innovative start-up companies was obtained and analysed using statistical measurements such as the Pearson’s chi-square test and the correspondence analysis method. <br /><strong>Findings:</strong> The results reveal that start-up companies at their initial phase of development mostly use bank loans as a funding source of their activities, but they opt also business angel as their source of funding at start phase of development. The findings further discover relation between the stage of the development of start-up company and its specific need. Additionally, research probes that collaboration with other firms or universities has a positive impact on prosperity of the start-up company in terms of higher profitability and better access to funding.<br /><strong>Research limitation/Implication:</strong> The Košice region is not an area, where representative survey in the field of start-up companies can be held nowadays. It relates to small market of innovative and creative solutions and goes with not so developed incentives to support start-up companies in their initial phase of development too. Thus, all the results and the outcomes coming from the dataset can be considered rather <span style="background-color: #f5f6f5;">demonstrational</span> than complex.<br /><strong>Originality/Value of paper:</strong> We show the specific needs and funding sources for start-up companies in the Košice region according to their stage of development and thus identify, which aspects government representatives should pay attention to and what should be taken into consideration when designing policy initiatives oriented towards support of start-up prosperity. Furthermore, we bridge the gap between increased attention to analysis of start-up companies and no effort made to analyse them in the Košice region.</p>