Startup Ecosystem and the Sharing Economy in CEE

INTRODUCTION: Central and Eastern Europe (CEE) has long been recognized as a region of excellent opportunities for building and growing startups and innovative businesses due to the availability of talent and capital efficiency. At the same time, there is an increase in sharing economy-oriented businesses due to digitalization and economic and environmental impacts. The research also incorporates a multidimensional taxonomic classification of the European innovation landscape based on the latest SAFE survey data. OBJECTIVES: The present article introduces the characteristics and evolution of startups and the startup ecosystem. It also highlights the emergence and positive development of sharing economy startup companies in the CEE region. The primary objective was to segment EU member states into homogeneous clusters to identify structural similarities and disparities in innovation capacity, growth potential, and systemic financial barriers among CEE economies. METHODS: Comparative analysis was used to create a coherent view of the issue at hand. We have examined statistical data from various surveys and statistical reports. The study also applied hierarchical cluster analysis as a quantitative form of classification to divide a heterogeneous group of EU countries into homogeneous clusters based on their similarity in the monitored parameters. This allows the identification of structural trends that are invisible when comparing averages. RESULTS: A vibrant hub, the Central and Eastern Europe (CEE) startup ecosystem has seen its combined enterprise value soar from €89 billion in 2019 to €213 billion in 2023, with a higher average growth rate (2.4x) than the European average (2.1x). The region now boasts 52 unicorns, collectively valued at €129 billion, and is supported by key markets like Poland (leading with nearly 8,000 startups) and countries excelling in VC investment per capita, such as Estonia (€310). Furthermore, countries like Croatia, Ukraine, and Estonia show exceptional efficiency, creating more than twice the number of unicorns per funded startup than the European average. Moreover, the clustering process revealed three distinct national profiles—Innovation Leaders, the Stable Core, and the Financial Risk Zone—demonstrating that acute collateral deficiencies and low investor confidence remain critical impediments to scaling startups in specific CEE markets. CONCLUSION: To continue supporting innovative startup companies from different areas of focus, including those from the sharing economy, it is important to pay attention to the development of a stimulating national and regional business environment. The study also concludes that transitioning from a stable economic core towards innovation leadership requires targeted policy interventions that move beyond traditional bank financing and address the identified systemic risks in high-risk zones.