9 of 10 startups do not last more than 3 years in Luxembourg
Startups in Luxembourg are exposed to risk at the moment they are founded. Statistically, 8-9 companies out of 10 do not pass the 3 years threshold. And furthermore, most likely, their founders will not be able to start a new business.
The problem is complex and largely rests in the reform of the foundation law, which was discussed for about 20 years, but has not yet been resolved. Add forced circumstances, pandemics, fires, and floods to the formula and you will get a recipe for the failure of almost any small business.
Taxes are also a problem. The system is not transparent and is difficult to manage. And this can play a cruel joke on aspiring entrepreneurs.
Also, we should not forget about the restrictive nature of current law. Now the decision about the fate of the startup and the founder is in the hands of the Ministry of Economy. On the one hand, the verification of the founder is important, because it helps to protect its future partners. On the other hand, the decision to give a second chance at the business should be left in the hands of the judicial system.
If the failure of the company is not caused by a crime, the entrepreneur should be able to try again. This is what Luxembourg Startup Association (LSA) says.
Whether the long-awaited law will be considered before the summer elections is not yet clear. But it will clearly still remain on the agenda because of its importance and relevance.
