What does public policy mean?
In the broadest sense, public policy means the entirety of all political processes and developments . These result in the legal and regulatory framework in which we live and companies develop. It is often underestimated that regulations that may not come our way for another five years are already being discussed now, thus laying important cornerstones for shaping the future.
So, the question we should always ask ourselves is: “in which direction is our society moving? “
Why should startups be concerned with public policy ?
Especially when startups are trying to shake up a particularly heavily regulated market, knowledge about planned regulations is essential. Knowing the status quo is the first step, but it is not enough in the long run. Many founders don’t pick up on everything that is being regulated and can thus stand in the way of their success.
And if a market – due to lack of innovation – is not yet regulated at all, that is even more challenging.
In which ways have political decisions affected startups?
The business model of some startups was only made possible by a change in the legal situation. Where would FlixBus be without the demonopolisation of the Deutsche Bahn? And in the same way, Uber, FREE NOW or all scooter providers were only granted market authorisation under certain conditions. The fact that we have such a wide range of mobility services in Germany is not only the result of the entrepreneurial will, but also of various political developments.
In contrast, political measures to curb rent increases have led to a limitation of Airbnb offers in many cities. So startups, as well as citizens, can benefit from policy developments, just as they can be disadvantaged by them.
from an interview with Business Insider (in German originally)
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