In the world of startups, certain cities are the main examples of Global Hubs – London, Berlin and Paris. However, entrepreneurs and innovations are not limited to these well -established centers. Throughout Europe, low-familiar markets are emerging as fertile basis for startup growth, such as business-friendly policies, low operational expenditure and unique benefits such as unchanged talent pool.
The southeast European European country Moldova wants to be an interesting destination for entrepreneurs on the way towards European consolidation. The government has taken active steps to create a supportive environment for startups with initiatives to reduce bureaucratic barriers, increase digital infrastructure and provide financial enthusiasm. The main driver of this transformation is Moldova Innovation Technology Park (MITP), which has increased threefold since its inception in 20 years. In 2021, 380 companies from the United States, the United States, Germany, Romania, Ukraine and Turkey have joined MITP to benefit from its highly competitive 7% single tax. The total revenue of MITP residents has reached $ 15 million in the first half of 2021 and is expected to hit $ 1 million at the end of the year.
To get deep insight about Moldover Startup Ecosystem, we talked to Dumitru AlaibaDeputy Prime Minister of the country and Minister of Economic Development and Digitalization. In this interview, he discusses the evolution of Moldover, business-friendly destinations, government ambitious initiatives and what the country’s entrepreneurial landscapes hold for the landscape.
Moldova is emerging as an exciting center for startups and innovation in Eastern Europe. What country is unique to encourage a rich entrepreneurial ecosystem?
Moldova is in a rapid change. This is probably the first time in his history that my country is courageously looking at the future, in its European path. And don’t make any mistakes, Moldova is the next EU member state. This is our vision. But in addition to these, there are clear reasons for Moldova investment, innovative startups and a very good place for business.
Moldova is not just a market for 2 million people – it’s half a billion market. Through free trade agreements with the EU, EFTA, the United Kingdom and others, our exports are moving rapidly to the western market. Just 15 years ago, 70% of the Moldover export was operated in Russia and CIS. Today, the situation is completely opposite. It shows how fast Moldova can adapt.
We are also creating a completely digital economy. In 2024, 86% of the state and entrepreneurs were digital in interaction. As a result, 1% of GDP has been saved every year due to the decrease in bureaucracy and digitalization.
In the case of taxes, Moldova is among a few European countries that have zero income tax on the retention income. We simply gain the tax delivered as dividends. For IT and BPO sectors, Moldova offers the most attractive proposal to Europe with a 7% single flat tax rate. IT service exports have increased tenfold since 2015, beyond regional competitors like Ukraine, Romania, Estonia and Latvia.
Moldova is also opening the doors of world talent for citizens of 47 countries, including the EU, the United States, the United Kingdom, Canada and Türkiye. We have set up optimal conditions for startups through co-operative spaces, accelerator programs and regulatory sandboxes. Although we support extensive startups, we especially give priority to Agitech, HealthThec, Edtech and Energitech.
Over the years, how has Moldova developed in entrepreneurial promotion and what significant milestone you will highlight?
Moldova has been transformed into a business supporter through bold reforms. Our government has taken decisions in control, digitalize and open markets by creating a more favorable environment for business success. In 2021, the Ventures have increased $ 7.9 million in our startup ecosystem-double the amount raised in 2021. Thirty-three startups attracted investment, benefited from both private funds and government-backed grants.
Through 5 programs we have provided 3.5 billion MDL with affordable financing, supporting 570 business and created about 2,000 tasks. In addition, € 1.9 billion is being allocated through the growth plan, whose goal is to double the Moldova economy in the next decade when accelerating EU integration.
How do you imagine the role of Moldova in Global Startup and Tech Ecosystem in the next decade?
We see Moldova as a leader in technical innovation in Eastern Europe. We notice that creating a rich entrepreneur where startups can scale internationally. Moldover will quickly transform digital, bold economic reforms and integration with European markets. As a small but elastic country, we have the opportunity to lip the traditional interruptions and advanced reforms at our accelerated pace.
Moldover Digital infrastructure and any investment or initiative is underway to increase connection?
We are implementing large digital conversion projects, including an integrated platform with EVOs that make public services easier. Moldover participation in the digital Europe program allows us to access funds for AI, advanced digital skills and overall digital conversion.
How does the government cooperate with private sector agencies to carry out technical innovations?
Moldova Innovation Technology Park (MITP) is one of our largest success stories. It provides a flat 7% tax system for its residents, which creates one of the most interesting destinations for Moldova IT companies. In 2021, MITP has driven the growth of the significant sector with more than 2,220 residential organizations, 20,3 employees and 1 billion MDL turnover.
What are the main challenges in enhancing its technology and startup ecosystem, and how is your administration addressing them?
Although the Moldover Startup Sector has seen impressive growth-the cables have only revenue of more than $ 1 million in 2021-the access to funds at the primary level remains a challenge. To solve this, we are improving our regulatory structure, expanding access to financing through public-private partnerships and strengthening cooperation with international investors.
Which technology presents the largest opportunity for vertical or trends for Moldova?
Moldova IT and Software Development, AI, CyberSScurities, Agitech and Fintech have strong potential. In addition, we are a regional leader of digital public services and e-governance, which attract investment and enhances business efficiency.
When you think about the journey of Moldova in innovation in technology and startup innovation, makes you the most excited now?
At this point, the speed we made as an emerging ecosystem made me the most excited about Moldova’s journey in technology and startups. We are moving towards a dynamic, global connected hub with real success stories from an emerging startup ecosystem. Numbers are growing and talking on behalf of them – our startups are earning millions of incomes, securing international investment and scaling beyond the boundaries.
The growing interest in the Moldover IT sector and the emergence of a new generation of entrepreneurs is especially exciting. I invite everyone to the Startup Moldova Summit 2025 on April 16 to explore the fast growing innovative ecosystem of the first -hand Moldover.
What would you advise to just start their entrepreneur journey to someone?
One of the best pieces I have received – and I will share with any ambitious entrepreneur – it’s just doing it. This is not the simple reason, because you believe in an idea. Because you just get a job and there is a reason that you like to take risk and uncertainty because an entrepreneur faces face. Because you value the freedom that comes with it. Creating a business is never a straight path. There will always be challenges, disasters and unexpected turn. However, those who are successful are those who see the obstacles as an opportunity for innovation and development.
For Moldovan entrepreneurs, my advice is simple: Be bold, embrace the change and think worldwide. Our country is evolving rapidly, offering more opportunities than ever before the Government Assistance Program for access to European markets. Take advantage of these resources, create strong networks and always try to improve your product or service.
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