Promising outlook for Cypriot Entrepreneurial Ecosystem

The Center for Entrepreneurship of the University of Cyprus presented the findings of the study “Mapping Cyprus Entrepreneurial Ecosystem 2022” with the support of PwC Cyprus

Cyprus’ Entrepreneurial Ecosystem has achieved great progress in the past decade but there is still a lot to do to fully utilise the tremendous potential this field can give the country’s economy. This is the most important finding of a study conducted by the University of Cyprus, Center for Entrepreneurship with the support of PwC Cyprus. The findings of the study, titled “Mapping Cyprus Entrepreneurial Ecosystem 2022”, were presented during an event at the University of Cyprus on 16 June 2022. The study’s main objective was to map the entrepreneurial ecosystem in Cyprus, to identify its weaknesses and propose solutions. 

According to the findings, 55 start-up companies are currently active in Cyprus, 31 of which are based in Nicosia, 13 in Limassol, and three in Larnaca. Only 4% of those are identified as pre-startup companies. Most of these pre-start-up companies are research spin-offs but despite having a product or MVP they are not yet registered companies. The main reason, according to the study, is the legislation, which places restrictions on spin-offs originating in public universities. The vast majority of start-up companies (91%) are headquartered in Cyprus with an average age of 3.5 years. 

Their composition is predominately male, with only 17% having either a female founder or a cofounder, suggesting there is a need for further enhancement of the role of women in this field. Most start-ups, or 64%, consist of small teams of two to five employees, teams with five  to 10 staff represent 25%, followed by companies with 10 to 50 at 9%, and only 2%with large teams of up to 100 employees.

The study also found that 60% of people active in the entrepreneurial ecosystem in Cyprus, believed the conditions in Cyprus are favourable and the infrastructure is good for start-ups, while 40% thought there is still “huge room for improvement”. The best aspects, according to the survey, concern the “Information and Communication Technologies” and “Favorable conditions for starting a business”’, followed by the “Level of regulation” and “Access to research facilities and universities”. On the downside, “Access to funding”, along with “Access and support in finding qualified staff” have been the two factors that are quite problematic.

Early-stage start-ups and pre start-up teams at large, have difficulty taking off in Cyprus, mainly because they face difficulties reaching out to investors. 

PwC Cyprus CEO Mr Philippos Soseilos said the progress achieved in the field in the past decade, is remarkable, and assured that “PwC Cyprus will continue to provide support and contribute towards establishing a culture of promoting innovation, technology, and effective problem-solving”. Mr Soseilos added: “investing in entrepreneurship, innovation, and technology is the safest path to growth”.

Read the “Mapping Cyprus Entrepreneurial Ecosystem 2022” report