While the pandemic is a big obstacle for the majority of businesses, every fourth startup has tackled the situation by developing solutions for the crisis. Another 7% plan to realize their solution-focused ideas in the future. Thus, almost a third of Austrian startups are actively contributing to overcoming the crisis!
This is also reflected by the fact that 30% of participating startups have hired new employees in 2020, whereas a smaller fraction, namely 9% had to downsize and 7% are planning or thinking about cutting staff due to COVID-19.
However, also startups are affected and aware of the current struggles. The proportion of startups assessing the present state of business as bad (2019: 8%; 2020: 10%) or very bad (2019: 1%; 2020: 3%) has risen. Nevertheless, despite the economically tense situation, there are still more startups that perceive the current state as very good (15%) or good (31%).
37% have to fight heavy negative (16%) or negative consequences (21%) of COVID-19. At the same time, 18% experience a very positive (7%) or positive (11%) effect on their startups. Only 6% are not impacted – neither positively nor negatively – by the pandemic.
Especially the Tyrolian startup landscape, making up 7% of Austria’s startups, has been hit hard. 46% of Tyrolian startups experienced highly negative effects. This might be due to the alpine countries industry structure: Many startups are operating in the tourism industry. Applaudably, startups in the Tyrol were outstandingly fast in adjusting commercially to the new circumstances and offered their services on a digital basis or opened up to new customer segments.
Hurdles and adjustments also call for public funding. 58% of startups participating in the monitor made use of COVID-19 support measures. Especially with their estimated revenue outlook for 2020, which is regarded as problematic by 54% (2019: 39%), it requires further support for startups to help them in order to help us mastering this crisis.
Author: Magdalena Riederer