We’ve got another batch of stories from across Europe and the rest of the world for this week’s Linkibuzz.
We know that there are gender and socio-economic inequalities in society and our first story highlights this, showing there is still work to be done before this gap is bridged completely.
It’s well-known that one of the biggest problems startups face is funding. However, a story from India highlights a growing problem that’s becoming a headache for startups globally. Make sure you read the post and story to find out what it is.
We have all heard about the Panama Papers. We expect that big companies and wealthy individuals will be placed under a microscope regarding their tax reporting. This has ramifications and creates more bureaucracy for companies, as you’ll see later in the post.
Lastly, the Irish tech startup scene is booming with a large investment of €220 million in the last 12 months. Silicon Valley companies have taken a hit, and it seems the Irish scene is reaping the benefits of this.
We hope you enjoy this week’s Linkibuzz posts.
We know that the gap in gender and pay inequality is closing. However, there is still a bridge to gap as found in statistics compiled by the National Union of Students (NUS).
While the statistics do acknowledge that a huge amount of effort and progress has been made, it also shows that there are still problems that need to be addressed.
The research finds that women are outperforming men at university and even outnumbering them, but graduate pay for the genders is not the same. It doesn’t just concern women either because the statistics also show that students who come from poorer backgrounds are facing the same pay discrimination.
Meanwhile, students from more affluent families are earning more money for the same jobs and from the same degree as those from poorer backgrounds. So the two key issues that the NUS has found are gender inequalities and socio-economic inequalities.
Here are some of the sobering findings by the NUS:
- Women are earning £27,000 10 years of graduation
- Men from poorer backgrounds are earning £8,000 less than men from more affluent backgrounds.
- Women from poorer backgrounds are earning £5,300 less than women from more affluent backgrounds.
These are some sobering statistics that show just how much work there is to do to even approach equality in the workforce.
For most startups, arguably the biggest barrier to success is getting funding from investors to secure the long-term future of the business. However, this recent report paints another picture of what could be just as big, if not, a bigger problem.
While the report is coming out of India, these barriers remain the same across startups in different countries and cultures. The story mentions how one of the biggest problems is building an engaged culture for employees and maintaining it.
One of the biggest challenges is hiring employees who are an ideal fit for the values of that company and will contribute to its overall culture. One of the ways this can be achieved is by creating a separate division within a company that deals with company cultural matters. Essentially, it can be thought of as a form of company indoctrination and ensuring that all employees are on the same page.
As the story mentions, continuous engagement is the key in this situation. I’m sure we can all attest to how difficult it is to get the right people involved in a startup, especially on a long-term engagement.
However, by creating a system that ensures employees are continuously engaged with each other and contributing to the company’s values and culture is a great start.
We’re all aware that the Panama Papers that have shown companies and wealthy individuals have been engaging in tax minimisation and evasion using Panamanian offshore company Mossack Fonseca.
When something of this nature is leaked – and there 11 million damning documents – it’s only inevitable that there is going to some response. We saw that Iceland’s prime minister resigned after his name was found in the documents and the release of personal tax returns belonging to UK Prime Minister David Cameron.
The German government has also responded by taking steps to crack down on companies using loopholes to avoid paying taxes. Tighter tax reporting requirements are now being reported as are improved global data sharing checks.
What we can be sure of is that the public scrutiny and government authorities’ microscopes are now going to be firmly placed on companies and their every move is going to be scrutinised diligently.
All we can say is this – make sure you’re paying the correct amount of tax to begin with and you’ll be fine in the long run. It really comes down to just doing the right thing.
There is some good news for Iris- based startups; a resurgence of funding from investors for tech startups in the country, totalling €220 million.
This resurgence of funding has occurred only in the last 12 months and shows that there has been a cooling off in interest from some of the mega tech giants like DropBox and Snapchat. Irish startups are now reaping the rewards and are starting to seriously compete with their global competitors.
Ireland is a hotbed for tech startups globally according to analysis by UK-based Mooreland Partners which showed that Ireland had the second-highest number of tech company sales per capita in 2015.
The first story does a great job of highlighting gender and pay inequalities amongst UK graduates. As we all know, awareness is the first step in dealing with any problem.
Our second story covers how people management and maintaining engaged employees is becoming a major headache for startups, perhaps more so than getting funding.
The Panama Papers leak shows that tax reporting requirements are probably going to become tougher globally and emphasises the importance of correct reporting.
Lastly, Ireland seems to be a great place to be a tech company right now with a massive resurgence in funding from investors to the detriment of Silicon Valley-based companies.
We hope you enjoyed these stories and stay tuned for next week’s Linkibuzz.