Last Updated on April 9, 2021 by Guest
Just this March, European Commission released a proposal to set new standards for tech start-ups. This is a big step to compete against the big tech companies nestled in the US and China. It created an uproar in the business industry, and more aspiring startups are anticipating the changes that will start to occur in 25 countries that signed up in the framework.
The European small to medium enterprises (SME) is aiming to secure market opportunities and grow revenues. However, there have several issues regarding the outdated mandates regarding the startup policies in EU countries. To solve these, member states established the EU Startup Nation Standard to change their practices to help startups and retain great talents.
According to the European Startup Standards, all countries across Europe should start changing their law regarding stock options and immigration visas to attract more startups worldwide. 25 countries agreed to sign up to this framework which leaves Hungary, Croatia, and Bulgaria as the only ones to have yet accepted it.
But, how will startups be affected by these changes, and what benefits should they expect? This article will discuss the changes in EU Startup Nation Standard and the things that aspiring startups should prepare before starting their tech companies.
How is the EU’s new rule going to boost tech startups?
U.S and China are the title holders for having several tech giants residing in their countries. In the U.S, there are Google, Facebook, Amazon, and Apple, which are widely used by billions of people worldwide. Meanwhile, China has Huawei, Xiaomi, Alibaba, and Tencent, which has already built their name in the tech industry.
Despite having over 6 million developers instead of over 4 million developers in the US, it is undeniable that the EU is lagging behind other countries when it comes to successful tech companies. It is also interesting how American and Asian countries fund 21% of tech start-ups in the EU. It proves how unsupportive the current policies in European countries are.
To catch up with the other countries, EU Startup Nation Standard proposes new rules that will support start-up companies in their business ventures. Here are some of their proposals:
- The countries will ensure that tech startups will enjoy employee share options that are not subjected to capital gains tax until they are actually earning.
- Startups are allowed to issue stock options to employees even with non-voting rights.
- The process of creating a new company will be done within one day only for €100.
- Processing immigration visas for tech talents all around the world will be accelerated and more convenient.
- The government will create more regulatory sandboxes and reduce regulatory red tapes to encourage more tech startups.
Aside from these current proposals, more beneficial policies will surface in countries that signed up for the EU Nation Tech Startup Standard proposals. Hanna Renner. CEO of German Human Resources software unicorn Persionio also said Europe needs effective startup policies to let startups attract the best talents worldwide.
What is the role of a translation company in tech startups?
The new EU Nation Tech Startup Standard rules promise a convenient application of immigration visas to attract more talents worldwide. This means that it will be easier to employ talented foreigners who will help tech companies. Despite the convenience, sourcing international talents face several challenges, including the language barrier.
Starting from applying for immigration visas in European countries like the United Kingdom, foreigners must translate their non-English documents. Ensuring the reliability of your translators for important immigration documents is essential. They have to sign a document for the accuracy of translations, including their complete name and contact details.
Besides that, finding a translation company with a full range of professional language and content solutions will help break language barriers. Diversity is beneficial when sourcing talents. Only English-fluent employees to enter a startup company will only narrow down your search for great talents and can even be viewed as discriminatory. However, when employing multilingual persons, you still need to provide language training and lessons to adapt to their working environment. While doing this, it is essential to have contracts, training forms, memorandums, and announcements translated into their languages.
What should you prepare if you are planning to start a tech company?
With the changes policies to boost tech startups, more aspiring business people and innovators are taking their interest in creating their company. However, even with the new rules’ aid, it will still not be easy to make a tech startup successful. According to research, the survival rate for startups is only 10%, and the remaining 90% fail even before sustaining themselves.
To secure success, a careful plan and strategy should be maintained. Here are some of the things that startups should prepare to start a tech company.
1) Think about it first.
Ensure that you are ready to start a tech company and have what it takes to succeed. There are a lot of great developers that think they can start their own business because they have great ideas and talent. However, not all great ideas are great innovations. If you see that your product is not viable for your target market, it is better not to start at all. If you think that you can be successful, then pump up your chest and start now.
2) Don’t overcomplicate your ideas.
Just think about the available technologies around you. After that, identify its weaknesses and why some people find it unhelpful or lacking. Then, see what you can do to make it better and beneficial for your target market. Make the shortlist of core values your guide in your innovation.
3) Identify your target market.
Identifying your target market is important when building a marketing strategy. Knowing this, you will have an idea of the right approach and platforms to use when marketing your tech products.
4) Build a great team.
If you want your startup to succeed, it is essential to invest in your team. Source promising talents that can materialize your ideas into reality. With the new proposal EU Nation Tech Startup Standard, it will now be easier to attract talents worldwide.
5) Submit the necessary documents.
Before, I would say that it is better not to apply for business licensures before making an income to avoid taxes. However, the EU has proposed a rule that tech startups don’t have to pay taxes until they are actually earning.
There is no way to know if a startup company can actually succeed in the market. However, this doesn’t mean that they are not worth it to invest in. To support them, the EU proposed new rules that will make it easier to build tech companies. Now, it is up to aspiring tech owners if they can compete against the tech giants worldwide.