As Brexit-related uncertainty engulfs the UK, with both the Government and its citizens trying to prepare for an unknown future, elsewhere in Europe there are brighter and more optimistic skies. The Baltic nation of Estonia recently topped a poll of the most digitally advanced nations, according to research conducted by global community network InterNations. The Estonian model for digital transformation could help the UK recover from the potential economic and political fallout following their exit from the European Union. The E-Residency initiative and its succeeding 2.0 model, which is supported by the Estonian government, demonstrates the paths to new business models that focus not only on providing services, but also on fostering a collaborative platform for all to innovate. The Estonian e-Residency programme has provided digital identities to over 60,000 people worldwide from over 160 countries, and supported the founding of over 8,000 companies, with digital innovation as a primary driver for success.
Creating easily accessible global communities the the UK could provide a great opportunity to forge new friendships around the world, just as we have done in Estonia. If the UK can take advantage of existing technologies that are improving security and information exchange, as well as implement initiatives to encourage female entrepreneurs to become business leaders, and cultivate a transparent working environment, as Estonia have done, they could reap the benefits of the transition to a more digitally advanced nation.
Despite their optimistic approach, British attempts to kick-start a shift to digital governance have so far seen mixed results, with initiatives proving insufficient for significantly easing the transition to Brexit, nor for providing the flexibility that the modern businessperson/worker needs to do their jobs to the utmost efficiency. For example, the Verify Scheme, introduced in 2016, failed consistently to hit performance and growth targets. At e-Residency, we believe there exists a viable solution.
The current political conditions make Britain a unique test market; the more local independent entrepreneurs we can attract to join our global community, the more interesting and innovative applications we can build with British businesses through e-Residency. This will ultimately result in European markets becoming more transparent, something which is crucial for the UK moving forward if they are to maintain their status as a global economic powerhouse.
There has been a great deal of talk centred around EU citizens’ ability to work in the UK post-Brexit, resulting in notable hostility, and a decline in non-UK applicants for jobs – applications from non-UK nationals in the pharmaceutical industry alone has seen a decline from 40% to 15% since the referendum! Since making government services (opening and managing a company, signing and encrypting documents, paying taxes) available online, Estonia has experienced an influx of foreign entrepreneurs starting businesses and generating revenue within the country, benefiting the economy and providing a business foot-hold in Europe for companies not necessarily in the EU, without needing to reside there.
If the UK wants to keep up with efficiency and security demands, as well as remote working trends that see 70% of people globally working remotely at least once a week, they could take influence from us, and implement secure and effective digital initiatives like e-Residency’s, or else the UK may fall further behind.
The aim for Britain should be to encourage foreign investors and businesses to remain or expand into the UK, to create those closer ties with countries across the globe as they face turbulent political landscapes. Digitisation is the key to unlocking the nation’s business potential, and e-Residency will always be there to support them.
This was a guest post by Ott Vatter, MD of Estonia’s e-Residency programme.
