Open source software: Empowering startups in the global market

July 12, 2023
Open Source

Open source software (OSS) has become a critical tool for startups seeking to thrive in today’s competitive landscape. Its affordability, flexibility, and ability to facilitate global scalability have positioned it as an invaluable asset for emerging businesses.

Interestingly, the European Union recognises the significance of open source software and its role in fostering innovation. In its proposals for a Cyber Resilience Act and a revised Product Liability Directive, the European Commission acknowledges the importance of excluding ‘free and open source software’ from certain regulatory measures. However, both legislative proposals still intend to cover OSS supplied ‘in the course of a commercial activity’, thus making its use subject to strict obligations. 

Considering how vital open source software can be for startups, here are five reasons why allowing the employment of open source software freely will empower startups and innovators in the Digital Single Market:


1. Enhancing cost efficiency and affordability

In the spirit of fostering a thriving startup ecosystem, it is crucial that the EU ensures all open source software remains exempt from the proposed regulations. Startups often rely on various open source tools, frameworks, and libraries to reduce costs associated with licensing fees and proprietary software. By allowing them to use all types of open source software, startups can leverage cost-effective alternatives without constraints, allowing them to allocate their limited resources to other critical areas of business development.

2. Promoting flexibility and customisation

The ability to adapt and customise solutions according to their unique needs is a significant advantage for startups. Open source software provides the necessary flexibility for startups to modify and tailor code, enabling them to create applications that align perfectly with their business models. When using open source software, startups can harness the power of customisation without restrictions, paving the way for greater innovation and differentiation.

3. Facilitating scalability and global reach

To compete in today’s global market, startups must have the freedom to scale their operations efficiently. Open source software, with its collaborative nature, supports startups in rapidly expanding their reach, and allows them to tap into a diverse community of contributors, benefitting from continuous updates, improvements, and enhancements. This collaborative ecosystem accelerates innovation and empowers startups to address new markets and regions effectively.

4. Fostering collaboration and knowledge sharing

A culture of collaboration and knowledge sharing indeed lies at the heart of open source software. By contributing to projects and accessing the collective wisdom of developers worldwide, startups can foster innovation, nurture talent, and access a wealth of resources and support. Such an inclusive approach strengthens the startup ecosystem and empowers entrepreneurs to succeed.

5. Ensuring security and cyber resilience

Cybersecurity is a paramount concern for startups, and open source software provides a robust foundation to address these challenges. The active involvement of the  community-driven review process helps identify vulnerabilities promptly, leading to reliable security patches. Additionally, startups can customise security features according to their unique requirements, ensuring a strong and resilient cybersecurity framework.



Open source software has emerged as a vital tool for startups aiming to reduce costs, gain a competitive edge, and drive innovation. To truly empower startups, it is essential to advocate for open source software to be used with as few restrictions as possible. By embracing an inclusive approach, startups can fully harness the potential of open source, unlock new opportunities, and drive global expansion. This is why we support a regulatory environment that ensures startups can leverage all open source software to accelerate growth, foster innovation, and pave the way for a thriving startup ecosystem in the digital age.