THE ROLE OF START-UP COMPANIES IN THE ECONOMIC GROWTH AND THE ASSISTANCE OF TAX POLICY

The demand for economic restructuring and the challenges presented by the 4th stage of the Industrial Revolution resonated within the entire global economy. Start-up companies play an important role in this stage as carriers of revolutionary technologies and innovations, which may influence the growth of labor productivity and economic growth. In carrying out their activities, start-up companies may face a lack of capital, which significantly limits their growth. The state's tax policy also plays an important role here. The aim of our paper is to examine the effects of a country's tax policy. Emphasis is placed on corporate tax, the amount of which plays an important stimulating role in the start-up business activities. Based on previous research, which signals a lack of capital in start-up companies and the impossibility of entering the capital market, tax policy can play an important role. This paper intends to quantify these relationships, using a linear regression analysis. The main outcome of the research, based on the analyzed data, indicates that a decline in corporate tax rate is associated with a higher growth rate of GDP per capita compared to a period when there was no decline in this tax rate. The subject of our interest is countries with a small size of economy, which are placed in the ranking of states in comparison with developed countries with a large economic size in the leading positions. This group includes Estonia, Finland, Ireland, and Hungary. Current practice in these countries suggests that start-up companies have strong support for the state's tax policy.