The latest survey data from Lithuania: 78% of respondents would recommend their children and relatives to work at a startup
According to a public opinion survey commissioned by Unicorns Lithuania, startup jobs appeal due to possibilities, and repel due to risk. A quarter of respondents, all from Lithuania, said they would recommend working at a startup due to future potential, as well as major new opportunities, yet as many as 1 in 10 were fearful of instability and uncertainty.
“Startups are, first and foremost, companies operating in the high value-added sector that are known for developing innovative technological solutions and having a massive growth potential. Despite rapidly evolving global trends, Lithuanian startups remain exceptional due to basing their growth on profit, not investment. It’s a slower, but more sustainable model that allows for flexible adaptation to change,” said Inga Langaitė, CEO of Unicorns Lithuania.
Roughly 7 out of 10 respondents characterised startups as companies with an original or bold idea and potential for rapid growth in foreign markets. Rapid growth was more frequently named by younger respondents, while unorthodox or bold ideas were championed above all by women. Although respondents mostly associated startups with innovation and novel areas of activity, this view has now been declining for three years in a row, increasingly giving ground to the notion that startups are businesses.
“During the past 3 years, the share of Lithuania-based startups in the country’s economy has doubled. In addition, the sector has created 7,000 new jobs, and salaries have risen up to €3,800. Further growth, however, won’t be possible without highly qualified talent – only 3% of respondents associate startups with IT, and barely more than that – with innovation or progress. The sector is sorely lacking in sufficiently qualified specialists,” Inga Langaitė said.
There are currently over 870 startups active in Lithuania that employ a total 17,500 residents. The breakdown of the startups by market gives the following picture: 25% in Business Software, 14% in FinTech, and 10% in HealthTech and Life Science & Wellness. The sector is currently looking for IT, cybersecurity, product management, finance, marketing, and digital marketing specialists, as well as for data scientists and data analysts.
According to Unicorns Lithuania, in Q2 2023, startups active in Lithuania have paid €93.8 million in taxes, which is 15% more than in Q1, and 25% more year-on-year. TOP 5 Lithuanian startups by amount of taxes paid – all Vilnius-based companies (Q2 2023):
- Vinted – €6.55 million
- Wargaming – €6.30 million
- Nord Security – €5.24 million
- Kilo Health – €3.84 million
- Oxylabs – €3.63 million
“When it comes to working at startups today, people are only cautiously optimistic, which is understandable – the economic situation is, indeed, quite worrying, and funds can rarely be raised without a challenge. That being said, Lithuanian startups aren’t used to particularly favourable circumstances anyway, which enables them not to veer off track when put under pressure. With the next economic upswing, resources will return to those capable of generating relevant, actual value. Understanding this, startups are working and innovating harder than ever, as well as looking for long-term solutions to strengthening Lithuania’s high value-added sector,” noted Ms. Langaitė.
78% of respondents said they would definitely or likely recommend their children or other relatives to work at a startup. Additionally, 7 in 10 Lithuanian residents would recommend IT studies, which they associate with a successful and materially secure career.
Commissioned by Unicorns Lithuania, the survey, which included 1,012 subjects aged 18-75, was carried out by the market research company on 19-28 June.