Digital entrepreneurship in Estonia

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Digital entrepreneurship in Estonia
Country overview
Estonia has one of the most digitalised governments and
is home to several digital business success stories. The
Estonian government considers the digital sector to be
one of its main focus areas and is therefore committed to
improving it through significant initiatives in support of the
digital business environment (Pillar II) and digital knowledge
base and ICT market (Pillar I). To do this, Estonian
incubators take part and funding is distributed through
the Entrepreneurship and SME Development Agency, the
Estonian Development Fund and technology parks. Digital
success also triggered the development of a private startup ecosystem including incubators and a business angel
network. An example of this is Estban, which provides help
in terms of access to finance and commercialisation. Estban
has also committed to cooperate with the government on
fostering digital entrepreneurship through the Association
of Information Technology and Telecommunications.
• Estonian Information Society Strategy 2013
This consists in a public policy document drafted in 2006
to shape a better future in Estonia from the standpoint of
the information society. It identifies a set of actions for
implementation, including the development of a citizencentred and inclusive society, promotion of ICT uptake by
enterprises, increasing the competitiveness of the Estonian
ICT sector, improving the efficiency of the public sector and
providing user-friendly public sector e-services.
The challenge that currently Estonia is facing is giving
more visibility to its digital solutions in both e-government
and business so that they may reach international
markets and be used in other branches of the economy
to improve efficiency. The Estonian answer has been to
launch initiatives such as the ICT Demo Centre and the ICT
Lighthouse to promote its solutions abroad in collaboration
with private sector stakeholders.
Policy overview
• National Reform Programme, Estonia 2020
Estonia 2020 is a strategic document drafted in order
to maintain sustainable development in the country. The
objectives defined in the document that relate to digital
entrepreneurship are: harnessing the potential of the creative
industries, ICT and other key technologies for raising the value
added of other sectors; developing human resources engaged
in research and ensuring a future supply of engineers and toplevel specialists; bringing transportation, ICT and other public
infrastructure that support business at an international level.
• Estonian research and development and innovation
strategy 2007-2013 “Knowledge-based Estonia”
The strategy focuses on sustainable development of the
society by means of research, development, and innovation
and recognises that information and communication
technologies represent a strategic form of support to these
activities.
Digital Entrepreneurship Monitor
Key initiatives
Country level: Estonia
Pillar I
Digital knowledge base and
ICT market
Startup Wise Guys
Startup Wise Guys provides
seed funding and an intense
mentorship program to early
stage technology startups.
http://www.startupwiseguys.
com
Pillar II
Digital business environment
e-Estonia - digital society
Estonia has implemented a
lot of initiatives to enable
online procedures : Full
creation of a company
online, Electronic Tax
filling, eID, Cyber security,
Digital signature and
storing and sharing of
signed documents, Mobile
payments, X road to develop
integrated e-services.
Estonian ICT demo center
Centre that showcases
Estonian ICT solutions in
different sectors.
http://e-estonia.com/ictdemo-center
http://e-estonia.com/eestonia
Pillar III
Access to finance
Prototron
The aim of the fund is to
finance the development of
prototypes. Financing can be
applied to be in electronics,
ICT field.
http://www.tehnopol.ee/en/
startup/prototyping-fundprototron
Estonian Business Angels
Network
It is an umbrella organization
for business angels and
business angel groups in
Estonia.
Pillar IV
Digital skills and e-leadership
Pillar V
Entrepreneurial culture
Estonian information
technology college
The college is focused on
teaching IT diplomas with a
teaching staff coming from
IT private and public sector.
It is located next other
technology colleges and
technology park.
AJUJAHT
Ajujaht is a Estonian startup
competition for young
entrepreneurs creating
innovative businesses.
Financial awards between
1000 and 17 000 Euros.
Local governements,
foundations, associations
also award additionnal
prizes.
http://www.itcollege.ee/en/
it-college/
http://www.ajujaht.ee/
http://www.estban.ee
In the spotlight
e-Estonia – Digital Society
Since the first policies implemented by Estonia in the area of ICT (such as the Estonian Information Policy in 1998), the country has implemented many
initiatives on e-governance, ICT infrastructure and online security, all of which have fostered the creation of a digital single market, making the country
one of the most advanced in terms of information society. These measures have considerably improved the ease of doing business online and include
different aspects that relate to digital entrepreneurship, such as:
• E-government services for business, including the possibility to create and set-up a company through a process that is entirely online, and also covers
electronic tax filing.
• Building a trusted electronic network backed by a trusted communications and payment system. This is supported by research and innovation in
terms of cyber security, the development of digital signatures, storing and sharing of signed documents and the development of mobile payments.
• X-road, the backbone of e-Estonia. This is an invisible yet crucial environment that allows the nation’s various e-service databases, both in the public
and private sector, to link up and operate in harmony. X-road is considered as infrastructure for the country, i.e. an “Information Highway”.
Estonia’s e-government solutions are unanimously praised and rewarded and public investment in the area has driven the growth of the ICT and digital
sector in the country.
http://e-estonia.com/e-estonia
Digital Entrepreneurship Monitor
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