UK industries have sat waiting for what Brexit will mean for them, and the tech industry is no different. Despite the continued uncertainty during the current transition period, there are still emerging tech startups taking their place across the UK.
The constant drive for an improved tech sector and more startups may be a result of reports that the tech industry is doing better than most amid Brexit. Tech wages and job growth both remain steady, meaning there are still reasons to search job portals for tech jobs in your area.
Yet, there are also causes for concern. Such as the challenges that may come about when trying to share data with EU businesses. If you are running or part of a tech startup in the UK during the Brexit era, this is what you need to know.
1. Starting with Data
Data is one of the origins of decisions in tech startups. Knowing consumers, what they want, and where they are all flow into a product or service that makes sales. Tech companies offering services will need to access data so they can make strategic decision that leads to profit. However, data sharing with EU countries (currently 75% of the UK’s external data flow) could be at risk if the UK Government does not finalise details during this transition process.
2. EU Professionals Still Employable
A startup can only be as good as its staff, and because tech jobs require skilled professionals, the restriction of free movement and a change in immigration policy is unlikely to affect the tech sector. Startups will still be able to employ the best EU citizens who are trailblazing the industry. A points-based immigration system is more likely to cause employment problems with low-skilled and seasonal jobs rather than the UK’s technology industry.
3. Investment Headaches
There is also talk that it will be harder to secure investment within the UK tech sector once Brexit is finalised. The exact realities of this are hard to know right now. Yet, many EU destinations are likely to become more competitive against London, which is one of the biggest tech hubs in the world.
One of the biggest competitors to UK startups will be German startups located in Berlin. Back in 2015, when Brexit was just a whisper in some London bars, Berlin was tipped to create around one million tech startup jobs by this year. This was mainly due to larger companies such as Google expanding in the area, and more technology startups predicted to follow.
Brexit Will Be a Long-Term Challenge
Even though the transition period is already underway, tech startups need to view the process as a long-term challenge that isn’t going to go away. It is something that startups will need to keep an eye on and monitor changes in good time.