For small tech companies in Denmark (I don't know much about other sectors/countries), it's common to hire people on a contract or fixed-term basis initially, something like 3-12 months. Then each side can decide if they'd like to make the arrangement more permanent in the future. For tiny companies with uncertain revenues it's pretty common to just have that be the default mode of employment: when you get 12 months of funding, you hire people for another 12 months, because you can't honestly promise any more than that anyway.
Oh, cool, are you a small tech company person in Denmark? Can I ask: why aren't there more small tech companies in Denmark? It can't be for lack of quality education!
I'm not; I'm a useless academic. :) Many of the students in my program start small game companies, though (I teach in a game masters program), so I follow that scene a bit.
Most of the small tech companies I know are pretty low-key, though. Besides the game company route, another common one is a small team of 1-3 people making a living doing iPhone app development, that kind of thing. Some congregate around hackerspaces like: https://labitat.dk/
Not as much of the typical 'startup' route per se, although there have been a few (Unity3d and Bitbucket come to mind). There's also Copenhagen Suborbitals, which isn't for-profit, but is probably the most widely recognized organization to come out of the Copenhagen hacker/maker scene.
