Rancho's U.K. Startup Story
Rancho Lee
VC Investor | Global Expansion, Acceleration and Open Innovaition | Technology with Impact
The Impact of Brexit on Diversity in UK Startups?
Since the United Kingdom voted to leave the European Union in 2016, the effects of Brexit have rippled through every sector of the economy, including the startup ecosystem. One of the most significant aspects of Brexit is its impact on diversity within the UK’s startup ecosystems. With changes in immigration policies, talent mobility, and access to international markets, Brexit has reshaped the landscape for diversity in the UK’s startup scene.?
Immigration and Talent Mobility: A Shrinking Pool of Diverse Talent?
The end of free movement across borders introduced stricter immigration policies, making it more difficult for EU nationals to live and work in the UK. As a result, startups are faced a shrinking pool of diverse talent, particularly from European countries. According to a report by Tech Nation, the number of EU workers in the UK tech sector dropped by nearly 20% following the Brexit referendum. This reduction in the availability of diverse talent threatens to stifle the innovation and creativity that are vital to startup success.??
Opportunities and Adaptation?
While Brexit presents significant challenges, it also offered opportunities for UK startups to adapt and innovate. For example, the need to diversify talent pools beyond Europe encouraged startups to look to other regions, such as Asia, Africa, and the Americas, for skilled workers and new ideas.??
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The UK's new points-based immigration system, while more restrictive for EU nationals, offers avenues for attracting highly skilled workers from around the world. Startups that can navigate this system effectively find themselves with a more globally diverse workforce than before.?
Finally, the UK government’s efforts to strengthen trade relationships with non-EU countries opened up new markets for UK startups, allowing them to serve a more diverse range of customers. Startups that successfully pivoted to these new opportunities found themselves becoming pioneers of the global startup ecosystem.??
Conclusion?
All in all, Brexit has disrupted the diversity landscape for UK startups, presenting both challenges and opportunities. The loss of easy access to EU talent and markets has made it harder for startups to maintain the level of diversity that once fueled their growth. However, by seeking talent and markets beyond Europe, UK startups have been growing more diverse and perhaps even more resilient.
This article has been written by Rancho & Jounghyun Shim
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Versatile Field Marketing Manager Driving Growth in AI, IA & RPA | Expert in Global B2B Tech | Multilingual | CIM & CIOL Certified | UK-Based | ??♀?
6 个月This is an interesting perspective, though I have to disagree to some extent. The economic landscape across Europe has shifted, and it’s not unique to the U.K. Many of the challenges you're pointing out can be seen in other Western economies as well. I believe opportunities are increasingly shifting toward the East, which feels like a natural progression. Economic cycles never stand still, and they bring new challenges with each phase. While leaving the EU might have made sense on a larger scale, it has undeniably complicated life for individuals, especially with regard to living standards. Some of this can be attributed to the heavy bureaucracy within the European Union. I’m not entirely sure of the current situation in the U.K., but with both legal and illegal migration creating strain, it seems to be having a damaging impact. Historically, the U.K. has shown resilience and the ability to thrive independently, which can’t be said for all EU countries. As an EU citizen, I support the union’s ideals, but I also feel fortunate to enjoy living in the U.K. without issues, thanks to my circumstances. It’s worth remembering that several of Europe’s wealthiest countries are not EU members. The topic is undeniably complex.
Director Sustainability & Innovation - Extolla | Angel Investor & Mentor | Startups | International Expansion | B2B Marketing | MAICD
6 个月Super interesting, thanks for sharing!