The evolution of startups in the Republic of Moldova

Abstract

This paper analyzes the evolution of startups in the Republic of Moldova with a focus on their role in economic development and the challenges associated with sustainability. The main goal is to investigate emerging trends in the entrepreneurial ecosystem. In a context marked by political instability and systemic economic challenges, Moldovan startups represent a relatively new but strategic area in the transition process towards an economy based on innovation and digitalization. The study uses a mixed methodology including such methods as: monographic, analytical, deduction, etc. The findings indicate a marked transition from traditional businesses (agriculture, trade, basic services) to startups focused on high-value-added areas, such as information technology, artificial intelligence, renewable energy. The number of active startups has increased by over 300% over the past decade, with a regional concentration around Chisinau, but also with emerging initiatives in university centers such as Bălți and Cahul. The importance of startups for the economy of the Republic of Moldova is constantly growing. They contribute to the diversification of the economic structure, stimulate innovation, create jobs for young people specializing in technological fields and attract direct investments from the diaspora and international partners. In addition, they play an important role in the development of human capital and in reducing the forced migration of young specialists, providing local opportunities for professional development. However, the study highlights significant obstacles to the scaling of startups. These include the lack of a predictable legislative framework, the absence of domestic venture capital funds. Although numerous public initiatives (grants, incubators, accelerators) have been launched, they are often dispersed, lacking continuity and insufficiently correlated with the real needs of startups. Startups in the Republic of Moldova are in an incipient growth phase, but with significant potential for the economic transformation of the country. To ensure the sustainable scaling of this sector, coherent innovation policies, functional public-private partnerships, expansion of entrepreneurial education, and more active integration into regional and international innovation networks are necessary. Only by consolidating these dimensions can the Moldovan startup ecosystem become a strategic pillar of the economy of the future.