Startup Acts: An emerging instrument to foster the development of innovative High-Growth Firms
Startup Acts are emerging and comprehensive legal instruments aimed at fostering the creation and development of startups, taking into account their particular needs. They are often designed through a participatory process involving the collaboration of different stakeholders in the entrepreneurship ecosystem. Although Startup Acts are still relatively new, if well designed, they can have a significant impact on improving private sector development and tackling high unemployment rates and economic gloom.
- Startup Acts provide startups with targeted incentives aimed at addressing the challenges they face.
- In designing Startup Acts, policymakers should pay special attention to the importance of adopting a participatory process, an ecosystem approach as well as a clear and objective selection process to target beneficiaries.
- Besides Tunisia and Senegal, which adopted a Startup Act respectively in 2018 and 2019, at least 16 more African countries are in the process of adopting one.
- Startup Acts are often designed through a participatory process involving the collaboration of stakeholders from the entrepreneurship ecosystem from both public and private sectors