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Entrepreneurship in Denmark

Denmark is one of the major start-up hubs in Europe, with outstanding industry clusters and an active and growing entrepreneurial ecosystem.

The entrepreneurial culture in Denmark is thriving these years. Clusters within information technology, life sciences, and cleantech are booming. And so are entrepreneurial clusters within food, maritime and design.

There is a very strong collaboration across Danish government, investors, startup communities and enterprise companies, which has been instrumental in boosting entrepreneurship in Denmark.

Between 2014-2016, there was a 360 per cent growth in the number of Danish small businesses. 


The life science industry in Denmark has evolved into one of the strongest clusters in Europe, and investment in Danish biotechnology is number 2 in the region.


The cleantech sector comprises several industries, from renewable energies (wind and solar power, hydropower, biofuels and biomass) to green transportation and other appliances that are energy efficient. The cleantech sector is boosted by Denmark’s ambitious goal of having its energy supply entirely powered by renewable sources by 2050. 

 

working in denmark

Did you know

In Denmark, entrepreneurs can establish their companies online and receive free support from government organisations, such as the tax authorities, in setting everything up correctly.

Strong array of industries

The leading position of Denmark concerning entrepreneurship is confirmed by the Global Entrepreneurship Index.In the rankings of 2019 Denmark is number 4 in the world and 1 in the European Union. 

The index is an annual ranking that measures the health of entrepreneurship ecosystems in each of 137 countries. The ecosystem is a mix of attitudes, abilities and aspirations of the local population regarding entrepreneurship, and the social and economic infrastructure of relevance for start-ups.

designer in denmark
Shop owner in Denmark

One of the most highly educated people in the world

In Denmark, human capital is one of the strongest assets. The access to free education creates all kinds of talents, and Denmark ranks fiftth in the world on the Global Talent Competitiveness Index 2020. 

Moreover, the Danish entrepreneurial ecosystem are benefitting from the unique Danish flexicurity model. It creates a safety net for employees, and makes it easy to hire and fire in Denmark. 

Read more about the Danish model. 

And while high taxes and wages can seem challenging, it brings some fundamental benefits to the entrepreneurs: The free education creates a big talent pool, who all have access to free healthcare. Moreover, the workforce is productive. Denmark's economy is the fourth-most productive in the world, while also having the fewest actual hours worked. 

 

 

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Getting a head start

Pawan Marwaha, a native of India and a founder of TableGrabber sees Denmark as one of the best countries for foreign entrepreneurs to start up a business.  

 

“Denmark offers an opportunity to test a product in a smaller market,” Marwaha says in an interview with DI Business magazine of the Confederation of Danish Industry.  

 

He also praises Denmark’s excellent infrastructure, particularly its physical and digital environment, national health service, and access to highly-qualified employees.  

 

Other factors that make Denmark attractive to foreign entrepreneurs are its location as the gateway between Europe and Scandinavia, the smooth interaction with government, and the flexible work culture.

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