Which business is best in Portugal? In recent years, Portugal has emerged as a thriving hub for startups and innovative companies. The Portuguese entrepreneurial and innovation ecosystem has gained significant attention and recognition for its growth and potential. In this article, we will explore the key findings from the Scale-Up Portugal 2018 report, which provides insights into the state of the Portuguese entrepreneurial and innovation ecosystem.
Understanding the Portuguese Ecosystem
The Scale-Up Portugal 2018 report, conducted by EIT Digital, Building Global Innovators, and their partners, takes a data-driven approach to understanding the key elements within the Portuguese entrepreneurial and innovation ecosystem. The report analyzes various aspects, including funding structure, investor profiles, economic impact, and startup business models.
The study focuses on 480 Portuguese technology companies founded between 2012 and 2017 across four major verticals: Information and communication technology (ICT), Cleantech and industry, Consumer and web, and Medical devices and health IT.
Which business is best in Portugal? Top Industries in Portugal
The report also highlights the top five industries in Portugal based on their share of total investments. These industries play a significant role in driving innovation and growth within the Portuguese entrepreneurial ecosystem. The top five industries are:
- IoT: Internet of Things, which accounts for 30 per cent of total investments.
- Health: The healthcare industry, contributes 18.8 percent of total investments.
- Enterprise Software: The software industry catering to businesses, representing 14.6 per cent of total investments.
- Marketing: The marketing sector, accounts for 13.6 per cent of total investments.
- Fintech: The financial technology industry, contributes 9.8 per cent of total investments.
These industries reflect the diverse range of sectors that are thriving within the Portuguese entrepreneurial and innovation ecosystem.
Investment Sources in the Portuguese Venture Ecosystem
The Scale-Up Portugal report provides insights into the investment sources within the top 25 Portuguese scale-ups and the ecosystem as a whole. The United States, United Kingdom, Belgium, and France are the largest contributors to venture capital financing from abroad, with a combined investment of €92 million in the Portuguese Venture Ecosystem (PVE).
Portuguese investors, on the other hand, lead in terms of frequency and total sum of investments within the PVE, with €30 million in the top 25 and €41 million in the ecosystem as a whole. However, the average financing size per investment within the PVE is approximately €1.5 million, which is 121% lower than the average in the USA, UK, and Sweden.
Contributions of ICT
ICT has emerged as a significant player in the Portuguese entrepreneurial ecosystem. It has received the most funding within the top 25, with €73 million, and within the Portuguese ecosystem as a whole, accounting for 59.3 per cent of total funding. ICT also contributes the most to revenue growth within the top 25 scale-ups, with €24 million, and is the largest contributor to job creation.
Consumer and web industries also play a significant role in revenue growth and job creation. Medical devices and health IT receive the second-largest share of financing within the top 25 and the PVE, representing 16.7 per cent.
ICT in Madeira Island
Madeira isn’t just a picturesque island; it’s an uncharted goldmine for ICT businesses aiming to extend their reach across Europe and beyond. Why? Let’s dive deeper.
At the heart of Madeira’s allure is its compelling tax framework. The Madeira International Business Centre (MIBC) isn’t just a name; it’s a promise of unmatched fiscal benefits for companies. Imagine benefiting from reduced corporate tax rates, exemptions from customs duties, and more, all while operating within the legal frameworks of the EU and Portuguese regulations. It’s not just about saving; it’s about maximizing value in every Euro spent, making every investment count, and ensuring efficient capital distribution. And the best part? All these tax incentives come with the European Commission’s stamp of approval.
But there’s more to Madeira than meets the eye. Strategically nestled between Europe, Africa, and the Americas, this island serves as a dynamic hub for international ICT trade and operations. Being part of Portugal and the EU, businesses rooted here enjoy unparalleled access to expansive markets. It’s not just about location but the doors it opens – simplifying logistics, tapping into the thriving EU digital market, and connecting with global players seamlessly.
And for an ICT business, infrastructure is key. Madeira doesn’t disappoint. With its advanced telecommunications network, world-class ports, and state-of-the-art airports, the region is primed for high-tech operations. Add to this a skilled, multilingual workforce, efficient administrative procedures, and a stable socio-political landscape, and you’ve got a recipe for success. In Madeira, it’s not just about setting up a shop; it’s about thriving, growing, and innovating in an ecosystem tailored for the future of ICT.
So, if you’re in the ICT realm looking for the perfect blend of business-friendly policies, strategic positioning, and modern infrastructure, look no further. Madeira beckons.
Conclusion
The Scale-Up Portugal 2018 report was conducted by EIT Digital, a leading European open innovation organization, in collaboration with Building Global Innovators (BGI). BGI is a global accelerator based in Lisbon, Portugal, with operations in Cambridge, U.S. It was born from the MIT Portugal Innovation and Entrepreneurship Initiative (IEI), intending to support Portugal’s capacity in business education, technological innovation, and entrepreneurship.
In conclusion, the Portuguese entrepreneurial and innovation ecosystem has shown significant growth and potential. The top 25 scale-ups, the top industries, and the contributions of ICT highlight the diversity and innovation within the ecosystem. With the support of service providers such as MCS, Portugal’s entrepreneurial ecosystem is well-positioned to continue its growth and become a global leader in innovation and startups.
However, which business is best in Portugal will ultimately depend on how committed you are towards your investment.
Miguel Pinto-Correia holds a Master Degree in International Economics and European Studies from ISEG – Lisbon School of Economics & Management and a Bachelor Degree in Economics from Nova School of Business and Economics. He is a permanent member of the Order of the Economists (Ordem dos Economistas)… Read more
