The survey is organized by a working group preparing The Startup Act, composed of representatives of the above-mentioned institutions. The authors want to identify the specific barriers faced by innovative technology companies in the Czech Republic. Experience so far suggests these are mainly problems at the company launch stage, administrative burdens in the early years of business, access to capital, or legislative obstacles.
“We are working on an analysis that will serve as the foundation for the proposal of a new Startup Act. Its goal is to make life easier for both startups and investors. We want the law to reflect the real needs of the Czech startup environment and help it fully unlock its potential. That is why we are reaching out to companies with this survey, the results of which will play a key role in preparing the new law,” said Deputy Minister of Industry and Trade Štěpán Hofman, noting that the survey focuses on areas ranging from bureaucracy, taxes, and access to financing, to ecosystem support and international expansion.
“The answers will help us identify and subsequently remove specific barriers to starting and growing startups, map the reasons why companies relocate abroad, and better understand their needs in financing, talent, or labor law. Currently, no publicly available sources provide such comprehensive data,” explained Markéta Přenosilová, head of the authoring team of the forthcoming Startup Act from the CzechInvest agency.
The online survey will run from August 27 to September 7, 2025, with results expected to be presented in the second half of September. The organizers hope to receive feedback and insights from at least one-tenth of startup representatives. They will be contacted directly, as well as through venture capital funds, business accelerators, and innovation centers.
The Startup Act is seen as a strategic step to strengthen the competitiveness of the Czech Republic, drawing inspiration from successful examples in Spain, France, and Romania.
“We want to kick-start startup-driven Czechia, and for this mission we are using data directly from startups. The newly launched survey will help us get answers to the questions that matter most to startup entrepreneurs. Their input will play a key role in shaping the final version of the Startup Act, historically the first comprehensive legislation dedicated to developing the startup ecosystem in the Czech Republic,” said Martin Jiránek, Chairman of the Czech Startup Association.
The Startup Act is a strategic priority
Startups have in recent years become an increasingly important part of the Czech economy. According to State of European Tech 2024, venture capital investment in Czechia amounted to about 0.07% of GDP.
“Startups and innovative firms are a source of innovation, technological progress, and new jobs. Our government is creating conditions to help them succeed even more. The creation of the first Startup Act is, after the new employee stock option scheme effective from January, another important step toward modernizing the business environment in the Czech Republic. I believe that thanks to data and information directly from entrepreneurs, we will create legislation that truly reflects their real needs,” said Prime Minister Petr Fiala.
Unlike traditional industries, startups often face specific problems not addressed by existing legislation. Their business model relies on rapid growth, a high degree of risk, and working with investment capital, which brings different needs compared to established companies – such as flexible labor law, the ability to motivate employees through stock options, or access to early-stage financing.
Currently, however, startups are forced to operate under conditions designed mainly for traditional and long-established businesses. This often leads companies to seek more favorable environments abroad, where startup laws already exist and provide clear rules and targeted support.
“Preparing a high-quality Startup Act that responds to current challenges is one of our key priorities. In line with the Economic Strategy: Czechia into the Top 10, which I presented upon taking office, we want startups to find conditions in Czechia comparable to the best countries in Europe, so they won’t need to look for opportunities abroad. Without their systematic support and development, the Czech economy would struggle to compete internationally in the coming years,” commented Minister of Industry and Trade Lukáš Vlček.
International context: Czechia still lags behind
In its 2024 report, the European Startup Nations Alliance (ESNA) ranked Czechia only 20th out of 24 active members in meeting the European Startup Nations Standards. This shows that the Czech environment faces many challenges and systemic measures are needed.
In recent years, however, the government has been improving conditions for young innovative firms. The creation of the Startup Act, alongside the new employee stock option scheme effective from January and tax exemptions on company sales, is another systemic step toward building a stable and competitive environment for developing tech companies in Czechia.
Startup-related matters are also gaining stronger institutional support. The Chamber of Deputies has established a Subcommittee on Startups, Science, Research, and Innovation, which is now the third largest subcommittee of the Economic Committee. The Coordination Council of Investors and Startups also plays an active role, contributing to the implementation of the European Startup Nations Standard, which Czechia joined in 2021. According to experts, this coordination between government, investors, and the startup community is already beginning to have a tangible impact and visible results.
