The failure of startups and legal regulation
Articles
Erikas Mečkovskis
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Nikita Laurėlis
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Published 2025-11-14
https://doi.org/10.15388/TMP.2025.14
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Keywords

tegal regulation
startup ecosystem
licensing procedures
administrative burden
innovation promotion
regulatory barriers
business environment

Abstract

This article examines the impact of legislative regulation on startup activities and itsinfluence on their viability. The aim of the study is to identify the main legal regulatory  obstacles and provide recommendations on how to mitigate them. The analysis covers four key sectors: FinTech, IT and artificial intelligence, e-commerce, and biotechnology and pharmaceuticals, which most often face complex licensing procedures, strict compliance requirements, and an unclear regulatory environment. The study results reveal that excessive regulation can hinder innovation and reduce startups’ chances of survival. To create more favorable business conditions, it is essential to simplify licensing processes, ensure clearer legal regulations, and reduce administrative burdens.

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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