Digital Future for Europe report on EU bureaucracy

A survey of some of Europe’s most successful digital start-ups and scale-ups shows they are being stifled by layers of EU bureaucracy.

The survey was of members of Digital Future for Europe, a coalition of over 100 start-ups, scale-ups, and tech associations. It revealed more than half of respondents, 53% struggle with new EU regulations.

Europe stifling business

The European Commission is debating new regulations that could further stifle innovation and prevent start-ups from getting off the ground, 53% of respondents say they find it hard to keep up with new regulations. A majority of respondents, 90%, said they were worried about badly designed regulations making their work harder.

Despite these concerns, however, more than half of respondents, 60%, did actually feel Europe was positive about the tech sector and it an attractive destination for investment.

Respondents noted that financing, access to talent, and access to market are their three biggest concerns. 31% of them also said that they encountered barriers while operating and trading across the EU.

Awareness about proposed rule changes was low, 65% of respondents said they were not aware changes were being proposed and 20% said they do not know what the changes are.

Kadri Tammai, Co-Founder and board member of Estonian startup Tehnopol Ventures said: “As the European Commission and decision-makers in Brussels look to introduce new rules and regulations governing the tech ecosystem it is crucial that the voice and concerns of Europe’s start-ups and scale-ups are heard.

“Clearly, now is the time to foster a more open environment to allow innovators and entrepreneurs to thrive instead of burdening them with more red tape and new regulations. Europe will continue to lag behind on the world stage if it doesn’t create the right conditions for new tech businesses to grow.”

The coalition is made up broadly of small and medium-sized businesses, fewer than 50 employees. Over half serve the global market, 51%. COVID-19 and its difficulties meant that some businesses surveyed suffered but many are able to bounce back, 87% are expecting to make new hires this year.

Furthermore, 62% are planning on launching new products and services, and 64% was planning to expand into new markets.

For more information on the survey follow the link here.