News
90% of UK entrepreneurs are using artificial intelligence, blockchain and cloud computing to increase efficiency
New research reveals the key drivers and obstacles in UK business growth strategies in 2024 and beyond:
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70% of British Generation Z and Millennial entrepreneurs are keen to start businesses outside the UK
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Over half of UK entrepreneurs (52%) use digital platforms to scale their businesses
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90% are already leveraging artificial intelligence, blockchain and cloud computing to improve operational efficiency
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Almost half (46%) are still dealing with the complexities of Brexit
LONDON, 09 May 2024–(COMMERCIAL WIRE)–Over half of UK entrepreneurs and aspiring entrepreneurs (56%) are looking beyond British shores, driven by the growth potential and greater flexibility offered in other global markets. This change, discovered by new research by Estonia’s e-residency programit means a pivot of British entrepreneurship to international markets, diversifying beyond local dynamics.
The survey of 1,000 UK entrepreneurs and aspiring entrepreneurs explores the rapidly evolving entrepreneurial ecosystem. It highlights the need for new solutions to reduce bureaucracy, highlighting advanced digital services and mobility as key factors for success this year.
Business without borders
As UK businesses navigate the complexities of a globalized economy, entrepreneurs are adapting their strategies to tap into international markets and stimulate cross-border trade. This proactive change is reflected in the attitudes and actions of UK entrepreneurs and aspiring entrepreneurs:
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Generation gap in global ambition: 70% of Millennial and Generation Z respondents are eager to open a business abroad, more than double the rate of Baby Boomers (34%).
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The rise of digital nomadism: Nearly two-thirds (63%) of respondents are exploring or have adopted a digital nomad lifestyle, using the latest technologies to manage business operations from anywhere.
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Building global networks: Three in five respondents (60%) are engaged in global partnerships and collaborations to extend their reach and drive innovation through diverse insights.
Artificial intelligence takes center stage once again
UK entrepreneurs are redefining their global strategies by elevating artificial intelligence and emerging technologies from practical tools to transformative resources for business growth. This shift signals a growing reliance on innovative digital solutions in the business landscape:
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Technology acquisition: While it’s no surprise that tech-savvy entrepreneurs are leveraging technologies like blockchain, artificial intelligence and cloud computing, what’s striking is the scale of adoption: 90% of respondents are already leveraging these technologies to increase operational efficiency.
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Generational technology gap: 77% of Millennial and Gen Z respondents consider these technologies crucial or very important to their businesses, compared to only 27% of Baby Boomers.
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Digital drives growth: Over half of respondents (52%) are likely to increase their use of digital platforms this year, highlighting the demand to embrace online tools as a path to expansion.
The story continues
The next technological wave: digital identity
Digital identity technologies are gaining traction in today’s business landscape as awareness of their potential to mitigate the growing threat of fraud increases. However, these tools aren’t just for secure identity verification; they enable entrepreneurs to run online businesses, transact globally, and handle everything from banking to tax filing, regardless of physical location. Despite their vast potential, awareness of these technologies is surprisingly low. This gap highlights the need for education and reveals an opportunity for those who are ready to embrace these solutions:
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Limited awareness: Only 1 in 5 respondents (20%) say they are very aware of digital identity technology, despite its potential to improve security, trust and transparency for businesses.
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Improve operational efficiency: Nonetheless, when asked to name the most important benefits, a third of respondents (33%) cited significant efficiency improvements as one of the top benefits. By simplifying identity verification, these technologies can reduce administrative overhead.
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Safety as a priority: Likewise, a third of respondents (33%) believe that increased data security is a key benefit, underlining the role of this technology in safeguarding company and customer data.
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Key to future expansion: A forward-looking 22% of respondents already consider these tools essential to their global expansion plans within the next year. This percentage has more than doubled to 47% over a ten-year horizon, reflecting a growing consensus on their importance.
Current state of entrepreneurship in the UK
Individuals navigating the UK’s entrepreneurial ecosystem, built for compliance and accountability, recognize that this landscape brings a mixture of challenges and rewards. This understanding fosters a proactive community, eager to tackle obstacles and seize opportunities for big wins:
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Brexit transition: As the nation continues to adapt to the post-Brexit environment, almost half of respondents (46%) are still dealing with the complexities this brings.
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Securing new investments: Despite the various challenges they face, 65% of Gen Z and Millennial respondents expressed a desire to expand their business this year nationally or internationally if they can secure new investment.
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Brave economic pressure: Additionally, 38% of all respondents are still preparing for growth this year, despite challenges related to inflation and rising operating costs.
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Bureaucratic red tape: Looking deeper into the support of the UK business environment, 31% of respondents feel the impact of administrative processes, while almost a quarter (24%) spend 11-20 hours per week on regulatory compliance alone.
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Government support: When asked to choose the top two priorities for support, financial incentives such as tax breaks and grants came out on top; equally critical is the demand for streamlined business processes, from tax procedures to business configuration.
Liina Vahtras, Estonia’s e-Residency program manager, commented: “Entrepreneurs around the world are navigating a rapidly changing landscape. To succeed in today’s interconnected world, businesses must embrace new models of collaboration and competition, looking beyond local markets to seize global opportunities. Investing in technologies innovative and fostering a culture of adaptability, Entrepreneurs can reach new heights, regardless of their location. These strategies are essential for both emerging and established businesses to thrive in a global economy.”
About electronic residency
Estonia introduced the world’s first e-residency program in late 2014, designed to give non-residents secure access to its digital public services. Since its launch, more than 113,500 people have obtained e-resident status, and these e-residents have founded more than 30,200 companies in Estonia. The program generated over €213 million in direct revenue for the Estonian state budget from state taxes and fees. Furthermore, it contributes to indirect revenue through the growth of Estonian companies that are part of the e-Residency market. These companies offer a range of services including business, financial, insurance and consultancy to e-resident entrepreneurs. For further details and statistics on Estonian e-residency, please visit: https://www.e-resident.gov.ee/uk-hub-digital-residency-setup/
Methodology
The study was conducted by Censuswide on a group of 1,003 entrepreneurs and aspiring entrepreneurs, evenly divided. All participants were 18 years or older. Data collection occurred from March 25, 2024 to April 2, 2024. Censuswide adheres to Market Research Society standards and follows both the MRS Code of Conduct and ESOMAR Principles. Additionally, Censuswide is a member of the British Polling Council.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509356172/en/
Contacts
Charlotte Kelly/Mary Taylor
07891 496946 / 07539 366728
eresidency@clarity.global