Austria launches project to create 50,000 new businesses by 2020

The Austrian government and industry leaders on Thursday launched a project to promote the creation of 50,000 new business enterprises and a subsequent 100,000 new jobs by the year of 2020, Austria Press Agency reported.

Presented at a press conference in Linz, Austria's third-largest city, the "founder-land" project is designed to combat the weak economy by using appropriate strategies, the report said.

State Secretary for the Ministry of Science, Research and Economy Harald Mahrer said there is still much room for improving the entrepreneurial spirit and that Austria should increasingly look east, to Asia.

He described the region as being the "lifeblood" for the domestic economy where an increased focus is needed, making it an important area of activity for the new strategy.

Other important areas are increased national and international networking by start-ups, increased knowledge transfer between universities and industry, removal of bureaucracy, and improved financial feasibility, industry leaders were quoted as saying at the press conference.

President of the Austrian Economic Chambers (WKO) Christoph Leitl also said planned tax reforms will not bring adequate relief for companies, many of which are having trouble financing their projects. He called for a participation exemption, whereby those participating in start-ups have the right to tax deductions. Endi