attracting and retaining startup founders and employees ... · startup special regulation •...

Co-funded bythe European Union

Attracting and retaining startup founders and employees:The case of Estonia

Dr Ave Lauren

EMN Estonia/Tallinn University

Co-funded bythe European Union

Overview

• Estonian context

– Demographicchallenges

– Reinventing Estonia

• Startup regulation

• Attraction and retention measures

Co-funded bythe European Union

Demographic challenges

• Ageing population

• Emigration

• Skills and jobsmismatch

Co-funded bythe European Union

Reinventing Estonia

• Tiigrihüpe/Tiger’s Leap

• e-Estonia brand

Co-funded bythe European Union

Startup special regulation

• Startup visa and residence permit launched in 2017.

– Business entity belonging to a company registered in Estonia, which is starting activity with the purpose to develop and launch such a business model with high global growth potential, innovative and replicable that shall significantly contribute to the development of the Estonian business environment.

• Expert committee of startup leaders evaluates the the companies’ compatibility with the startup definition (10 days)

• Visa up to 548 days, temporary residence permit up to 5 years (extended up to 10 years)

• Founders AND employees

Co-funded bythe European Union

Startup special regulation

• Preferential treatment:

– Exemption from the immigration quota

– Exemption from investment requirements

– Exemption from salary requirements

– Exemption from the Unemployment Insurance Fund’s permission

– The individual may also bring their family to Estonia

– Even if startup fails, but the person has been in Estonia for 3 years, the possibility to renew a temporaryresidence permit

Co-funded bythe European Union

Co-funded bythe European Union

Co-funded bythe European Union

Attraction and retention

• Startup scheme aligns with mainstream pro-businesspolicies…

– Easy to start a business via e-Business register (3hrs)

– Business friendly tax policy

– Easy to declare taxes (3-5min)

• … and with the e-Estonia brand and PR activities.

– e-Residency

Co-funded bythe European Union

Startup Ecosystem

• Startup Estonia

• Funding available

• Active startup community:– Growing number of incubators,

accelerators, mentors, events, co-working/co-living spaces …

– #estonianmafia

– Interest to link with TCNs tolearn about and access newmarkets

Co-funded bythe European Union

Thank you!

ave.lauren@tlu.ee