Economy

Employment and turnover has taken on greater prominence in startups in Porto and even surpassed the Porto Metropolitan Area

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Porto.

A study by ScaleUp Porto concludes that between 2016 and 2018 the Invicta has seen a steady growth in employment and turnover in the startups in town, at twice the speed of that observed between 2013 and 2015. The companies' average business growth in Porto's entrepreneurial ecosystem has even reached 26.2%, whereas similar companies in Porto Metropolitan Area (AMP) stood at 7.7%.   

The suty Re:think | Re:build | Re:load features a profiling of the entrepreneurial ecosystem in the region of Porto, and characterizes the scaleup process, which is the term applied to refer to startups with this kind of growth (20% or higher per year, either regarding turnover or the number of employees for three consecutive years).

The main findings are that between 2016 and 2018 these companies have attained the scaleup status, while reducing the average time to reach that status.

As for turnover, the average annual growth was higher than the economy's growth: between 2016 and 2018 it reached 26.2%, three times higher than that observed between 2013 and 2015 (8. 6%).

Employment numbers are also encouraging and confirm the tendency towards a more accentuated growth in the period from 2016 to 2018. The startups in the health sector and medical devices registered an employment growth at 27%. The cleantech sector and industry 4.0 have doubled growth, from 5% to 10%. For one, startups in the client and web services remained stable at 35%. In turn, the ICT startups have grown from 6% to 20%.

This latest report is based on information gathered in 2012, and was weighed against the previous study (2015-2018), so as to better comprehend the dynamics underlying the evolution between the periods 2013-2015 and 2016-2018.

ScaleUp Porto. is a municipal strategy targeted at promoting the city's innovation and entrepreneurial ecosystem, in terms of startups's growth - the so-called scaleup process - and bearing in mind the sustainability of that same ecosystem to increase the region' economic competitiveness, creating jobs and improving the lives of citizens.