Starting a business is easier nowadays
This entrepreneurial spirit is supported by the fact that individual activity or even a company can be registered online, and accounting, payments, e-commerce, advertising, and artificial intelligence tools allow some tasks to be done without a large team.
Moreover, Lithuania stands out with a very high level of business digitalization – according to Eurostat data, 43% of the country’s companies conduct sales online, which is the highest share in the entire EU. This allows testing a new product or service on a smaller scale first, reaching customers not only in Lithuania but also abroad, and postponing larger investments until there is real demand in the market.
“Twenty years ago, starting a business often began with premises, equipment, and employees. Today, the first investment for many businesses can be a computer, a website, and a few hundred euros to test an idea. When creating an IT business, it is worth seeking larger capital only when there is already visible real demand in the market,” says Edvardas Arnatkevičius, Head of Customer Relationship Management Department at Bigbank in Lithuania.
Sometimes a computer alone is not enough for business
The situation is different when a business needs equipment, premises, inventory, or larger working capital. In such cases, startup costs can grow from several tens to more than a hundred thousand euros.
According to the bank’s calculations, based on data from the State Data Agency, starting a small manufacturing business in Lithuania may require about 60–150 thousand euros, of which 30–80 thousand euros would be equipment and machinery, 10–25 thousand – premises adaptation, and another 20–45 thousand euros – raw materials, deposit for premises, and working capital for the first few months.
Starting a small café can cost about 30–60 thousand euros: approximately 10–20 thousand euros may be needed to equip the premises, a similar amount for professional kitchen, coffee, and refrigeration equipment, and the rest for furniture, initial products, and financial cushion.
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Such an investment can be financed not only by savings or funds from relatives but also by seeking investors, using EU support programs, and nowadays popular crowdfunding platforms. Of course, financing by mortgaging existing real estate can also be used, and an already operating small business can use existing commercial premises or mortgage purchased premises for expansion.
“Such businesses are created with more serious expansion opportunities in mind, but it is important to understand whether the investment will really pay off. The good news is that companies in Lithuania with up to 9 employees earn on average over 300 thousand euros in turnover per year. It is important to prepare a good plan and think not only about the idea and product but also about sales,” calculates E. Arnatkevičius.
Failure in youth does not necessarily mean a big blow
The latest analysis by the Register Center also disproves the belief that most new businesses barely survive their first year. Of about 10.5 thousand companies established in 2024 that submitted financial reports, 69% increased revenue in 2025, and 52% ended the year profitably. The total turnover of the analyzed new businesses was 1.6 billion euros, and among the fastest-growing were IT, pharmaceutical, logistics, and transport companies.
“Young people are bolder, having grown up in a free country, and usually do not have major commitments or families. They understand that even if the business fails, the world will not collapse and they can always return to salaried work, so they more often take advantage of all possible opportunities,” says E. Arnatkevičius.
However, he notes that the easing of starting a business and the growing number of new companies does not mean that every idea should be immediately financed with investor help or borrowed funds. Even before establishing a company, it is advisable to check real demand, calculate at least the expenses for the first few months, and set a limit on how much own or borrowed money can be risked. “The cheaper the idea can be tested in the market, the lower the chance of paying dearly for wrong assumptions,” the specialist concludes.
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