Theoretical Background and Types of Start-up Companies

Abstract

The changing conditions affect all the economies of the world, but the most significant thing is that these conditions manifest themselves in small open economies with a high degree of dependence on external foreign economies partners. Because of it there is a need to proactively solve current issues and problems not only in economy, but also in geopolitics, logistics, medicine, security etc. Startups are businesses that are based on an innovative product and have high growth potential. Startups represent the potential to boost the national economy, enter the international market and provide a support to innovation. The most important difference between companies, which are just at the beginning of their lives, and start-ups is rapid growth, while area of business is no important. The aim of the article is to explore the theoretical foundations of startup companies. The article describes the life cycle phases of startup companies and categories of startups. The contribution of the article is to summarize the basic theory of startups, describes the concept of startup and examines the occurrence and sectors of start-up in the European Union.