County support does not predict Estonia’s startup numbers

The number of business-support organizations in Estonia’s counties does not reliably correspond to the number of startups, according to a mapping of 13 counties by Estonian Business School junior researcher Jelena Žovnikova, published by ERR.

Estonia ranked among the world’s 12 best startup ecosystems this year, according to StartupBlink’s global index. A database by the Estonian Founders Society lists more than 2,800 startups in the country, employing over 17,000 people.

The sector is concentrated in Harju and Tartu counties, where 94 percent of startups are registered and 98 percent of startup employees work. The other 13 counties have a combined 164 startups and 356 employees.

Žovnikova mapped regional development centres, incubators, accelerators, business programmes and events, youth initiatives and other startup-support organizations. The study, commissioned by Startup Estonia, excluded national initiatives and initially left out Harju and Tartu counties.

Ida-Viru County had the most support organizations, with 26, while Pärnu County had the most startups, with 46. To compare counties of different sizes, the analysis measured the number of organizations and startups against population. Across the 13 counties, the average was 0.34 support organizations and 0.30 startups per 1,000 residents.

Patterns varied widely. Pärnu County had about a third fewer support organizations per resident than the average but nearly twice as many startups. Viljandi County had 1.3 times the average number of support organizations and 1.6 times the average number of startups. Võru County had 1.7 times the average level of support but just 0.7 times the average number of startups.

Hiiu and Põlva counties had about twice the average level of support, but no startups were registered in either. The mapping found no clear link between the number of support organizations and the number of startups in a county.