Brexit and the Future of the UK Digital Economy

By Hanan Awaad

Hanan Awaad President and Founder Corporita Inc.
Hanan Awaad
President and Founder
Corporita Inc.

Like millions of business people around the globe, I’ve been following the new historical turning point when Britain decided to leave the EU. Many were anxious to understand the situation and its implications on several socio-economical factors in the British lands. The only certain thing about the situation is the demonstrated frustration of young generation and the uncertainty that made the future unclear.

On the personal level, I was interested in learning how such political decision will impact the UK digital economy, being a resident of one of the most vibrant digital economies in the world – the Region of Waterloo.

In crafting business strategies, we – business strategists – perform PEST analysis. In the analysis, we scrutinize the political, economic, social and technological factors. We totally understand the importance of having a stable political scene to encourage and champion entrepreneurship in business in general and in technology in particular.

The analysis of the UK markets before Brexit was so promising with a record-breaking of more than 500,000 new ventures in 2015 and the majority of those company were tech companies. The Government had exerted tremendous efforts in supporting entrepreneurship by injecting investments in infrastructure, establishing several initiatives aiming to support emerging talents and funding new startups generously.

So, how leaving the EU might hit the digital economy hard? The answer is that by leaving the EU, the UK has shrunk its pool of talent by at least %20 according to some estimates, lost shared trade markets and of course will not be eligible for massive funds available through the EU programs to encourage clean energy, high-tech, and other innovative fields.

Originally posted 2016-06-30 06:11:20.

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