Sep 5, 2016Industry insights,
The future of tech start-up hubs
When considering the world’s technology start-up hubs, an obvious choice would not be Romania; still cited as one of the poorest countries in the EU. In spite of this, since joining the European Union in 2007, Romania is now the second-fasted growing economy, after Ireland.
The capital city; Bucharest, with it’s wide, tree-lined boulevards and its glorious Belle Époque buildings, is today considered a thriving metropolis. With this new zest, the city is starting to breed a new generation of tech entrepreneurs that are all striving to make Romania known for better things. So what makes this country so promising as a tech hub? It comes down to a ‘perfect storm’ of culture, history, education and infrastructure.
The country is well stocked with home grown talent, mainly due to their STEM (Science, Technology, Engineering and Mathematics) education system, installed when the country was in communistic ruling, which is ideal for creating developers and programmers.
One of the key factors that has supported Romania’s advances in technology is their high-speed internet. Whilst western European countries have had to upgrade their internet infrastructure, Romania was a late adopter to the internet and so therefore went straight to fibre broadband. In fact, Romania’s peak internet speeds are the fastest in Europe and sixth worldwide*.
In addition, and probably somewhat of a hangover from the 43 years of communism, the country remains with relatively cheap operating costs and low wages, making starting a business from this location viable, especially when you combine this with a scope for international trade.
Whilst the country experiences one of their own technological revolutions, one of their increasing challenges is retention. They create these budding entrepreneurs with ease, but keeping hold of them, when the bright lights of bigger cities such as London or Madrid offer individuals so much more opportunity, is proving difficult.
So in a bid to not only develop the skill, but retain it, the people of Bucharest will have to look further than their own STEM educated pool of talent and start to create a Sales & Marketing function in order to compete with the some of the other, more established technology renowned cities such as Berlin, Barcelona and Amsterdam. Saying that, we don’t think it will be long before Bucharest is on the map for international technology.
*Reference: State of the Internet Report