LONDON: The CTO of tech start-up Digital Shadows has spoken about the dangers of leaving the EU for UK businesses.
The question of whether or not to remain a member of the European Union (EU) could have a knock-on effect on the health of the UK tech start-up scene.
So claims James Chappell, founder and CTO of Digital Shadows, who has said remaining part of the EU is vital to business success.
Speaking about the various advantages for start-ups based in the UK, Chappell warned against the potential ramifications if the country were to decide to leave the EU, citing a drop in skilled professionals and potential uncertainty around data protection laws.
[The UK has] great connections with Europe in terms of sourcing talent from the EU without requiring a visa, and that gives us access to a much larger talent pool than we’d otherwise have,” he said.
It’s a really great environment to start a small business and to try to grow it.”
During the Queen’s speech this week, it was confirmed that the Conservatives are planning a referendum to re-evaluate Britain’s membership in the EU. The House of Commons will reportedly vote on the legislative agenda next week, with the referendum to be held by 2017.
Commenting on some of the advantages that UK start-ups have over other tech companies set up in different countries, Chappell added: “The level of administration required to set up a business is definitely lower here in the UK. In the UK you’re at an advantage from a time-zone perspective.
One of the reasons the banking industry’s done so well here is that you can cover so much of the world from this time-zone. It’s just a very advantageous place to be.”
The EU recently announced plans to build a single digital market, making it easier for start-ups to operate across Europe, but this could be lost should the UK cut ties.
Earlier this month, techUK CEO Julian David urged the new government to focus on a smart and flexible immigration policy that would welcome more skilled workers into the UK across industries, rather than shutting out talent that could help the country to thrive.
