Last updated on November 2nd, 2021
According to a recent study, Estonian e-residents have launched nearly a third of Estonian startups – 348 out of 1,200. The majority of these businesses are focused on developing business software and providing FinTech solutions. The study was conducted by by Startup Estonia and the Estonian e-Residency.
Eve Peeterson, the CEO of Startup Estonia, thinks that Estonia attracts international talent due to its innovative digital society and global reputation as a successful startup breeding environment. “Estonia’s startup environment is modest. But it is diverse and has emerged as a critical driver of innovation and economic progress. The Estonian startup ecosystem has been able to actually bloom and thrive thanks to the e-Residency program “According to Peeterson.
Furthermore, e-residents have enriched the local start-up environment with their unique abilities, foreign experience, and cultural variety, strengthening Estonia’s status as one of Europe’s most appealing innovation centers, according to Peeterson.
Startups Pay About €100 Million Annual Labor Taxes
According to Peeterson, Estonia’s image as a “creative digital nation” has been strengthened by “success stories of Estonian companies,” including unicorns, which “engenders trust among entrepreneurs and top talent who are keen to challenge themselves in this atmosphere.” She went on to say that Estonia’s startup cluster employed over 6,000 people and paid over €100 million in annual labor taxes. Startups formed by e-residents, as well as the entire e-residency network, make a substantial contribution to the local startup environment. As a result, e-residents might be seen of as global ambassadors for Estonia’s entrepreneurial culture.
Estonia e-Residency With Numbers
The Estonian e-Residency initiative was launched in December 2014 with the goal of giving safe access to e-services provided by the Estonian e-governance ecosystem to foreign nationals. Since the program’s inception, Estonia has welcomed over 83,000 e-residents, who have gone on to start over 17,800 businesses in the country.
Estonia e-Residency program has generated direct revenue for the Estonian economy in excess of €68 million, in addition to the indirect economic impact stemming primarily from development among and investments into Estonian enterprises supplying services to e-residents.