General overview
The Export Strategy seeks to describe the market characteristics and buyer behaviour of each of the 10 target sectors including Cyber, DeepTech/AI, EdTech, FinTech, CleanTech, Enterprise Tech, HealthTech, Smart Mobility, LegalTech and Modular Housing.
The Export Strategy is intended to be used to inform early UK market entry planning for Estonian entrepreneurs operating across 10 fast-growth tech sectors in the UK. More specifically, the Export Strategy provides a detailed scan of 10 fast-growth markets which can be used as market intelligence as well as tactical insights and guidance for exporting organisations to consider when evaluating UK market entry.
Finally, the Strategy also signposts additional organisations that can support subsequent UK market entry planning and execution activities incl. Universities, Industry Associations and Consultancies.
Strategies per sector
Export strategy
General
Starting a business in the UK can be expensive. It’s not just a matter of getting the start-up cash together though. The Office for National Statistics (ONS) says only 42.5% of businesses are still running after 5 years, so you must figure out the long-term costs involved with starting a business.
Costs to run a Business in the UK
- When starting a new company there’s a fee to incorporate your business to make it a legal entity. Depending on the type of business you’re setting up, this will likely mean registering as a limited company with Companies House.
- Although it only costs £12 to do it yourself, many new entrants will use the services of an ‘agent’ to do this instead. Doing it this way means you don’t have to worry about the paperwork and getting it right. While this can also be cheap, it could cost upwards of a £200.
- Your business property will likely be one of your biggest expenses when starting your new company. Unless you plan to work from home, renting an office space, warehouse or something similar can set you back thousands in your first year.
- In fact, according to research by Lloyds bank, business premises can cost up to 25% of a new business’ first-year budget—approximately £2987.
- Like with all property, it depends hugely where you are based as some areas are significantly more expensive than others, and vice versa. The cost of offices in the UK could set you back around £73 per sq ft in Cardiff, £97 in Edinburgh, £98 in Edinburgh and up to £175 per sq ft in the West End of London.
- All businesses will need equipment—whether that’s computers, software, hardware, tools or manufacturing equipment.
- If you’re a consumer-facing business selling physical goods, then of course you’ll need to consider stock. Naturally, this will depend highly based on what you’re selling so it’s difficult to make an estimate, but you should shop around to get the most cost-effective option.
- While these costs can fluctuate, a release from Lloyds bank showed that a new start-up business can spend 20% of their budget on IT and technology alone—around £2,426.
- While some less marketing-savvy entrepreneurs may not see the value of investing in good marketing, you want to make sure your new business hits the ground running. Great marketing can help potential customers hear about you and what you’re offering. After all, you won’t get any business if nobody knows about you.
- At its most basic, this should involve a good website and social media presence. Using a website builder like GoDaddy, you would need to pay around £100 for a basic website. But if you’re an online retailer, of course, you want to spend more to make sure it’s as best it can be. This may mean hiring an agency or freelance web developer.
- Other marketing activities like direct marketing (such as email), performance marketing (such as search engine optimisation), or paid digital marketing (running ads) each come with different price points. If you don’t know much about marketing, consider a freelancer in the early days to help get your brand setup—it will pay off in the long run.
- Marketing for new businesses can be around 7-8% of revenues, but startups with margins less than 10% might spend a higher proportion of the budget on marketing. This depending on the business’s needs.
- When starting a new business, professional services can be key to ensure you start off right. This could include legal advice, accounting services, or information from your bank.
- Lloyds Bank found 76% of new entrepreneurs sought business advice before launching their new business. But, they typically turned to informal sources, such as friends and relatives (41%), or former colleagues (30%). Only 19% sought formal advice from an accountant or bank (11%).
- An accountant, for example, can provide lots of value early on. From ensuring compliance to changing rules and regulations to optimising tax efficiency, they can be very valuable. Accounting for a small business can cost between £60 to £250, depending on the complexity of your new business.
- Starting a business is hard, time-consuming work. Because of that, you may not have the time or energy to manually trawl through CVs looking for the right candidate.
- That’s where recruitment agencies can come in useful.
- Recruiters can take the hassle away from recruiting for the positions you need filling. But these can cost if you decide to go down this route.
- Regardless of whether you do use recruiters or not, you need to consider the time for interviewing and training, as well as a new employee’s salary into your budget.
- Please see information provided in the additional documentation provided, which outlines typical salary costs for specific roles, which vary across the UK:
- Business insurance is a must for new businesses.
- Although you might think it’s a big expense, you will want to be protected should things go wrong.
- Since you won’t have lots of spare cash in your early days, not having insurance could spell disaster.
- Public and product liability insurance are popular policies for small businesses.
- They protect you against injury or damage to a third party arising out of your work. For instance, a customer visits your shop and trips over some stock, injuring themself. Legal cases and lawsuits can be expensive, and insurance can protect you financially.
- For some industries, having certain types of insurance is essential. For example, financial advisers, accountants, architects and engineers are required to have professional indemnity insurance.
- If you have already, or you’re planning to take on employees, then you’re legally required to take out employers' liability insurance. This will apply even if you only take on temporary or casual workers. Without it, there are serious fines of up to £2,500 per day.
- The average cost of public liability insurance for businesses in the UK is £118 a year, but it can range from £50 up to £500 depending on the type of business you are. You may want to spend more or less depending on how comprehensive you want the cover to be.
- The average cost of starting your own business is around £12,601, according to Lloyds Bank. This includes covering most of the costs above, like paying for business space, which takes up around 25% of a new business’ cost, or £2,987.
- Other big costs include technology (£2,426) and vehicles (£2,440), and together with property account for 60% of a new business’s start-up costs. This likely doesn’t cover things like staffing, or ongoing costs throughout your first year or two though.
- However, other sources have found the average start-up cost to be higher, at £22,756 in the first year. But, this figure includes large legal fees (£6,259), accountancy (£3,937) and HR (£3,518) expenses which won’t apply to everyone.
- Location. The most expensive place, unsurprisingly, to set up a new business is in London at £30,211.
- Meanwhile, entrepreneurs in Wales can expect to pay as little as £8,096 in contrast.
- Of course, though, these are estimates and will be very different based on your particular circumstances. Your location, business premises, business type and industry will all change the costs you pay, as well as different levels of business insurance to protect you should things go wrong.
- Regardless of which estimate you take, it’s important to understand that it’s expensive. Not only is it often more expensive than you expect in reality, but you’re probably having to dip into personal savings to cover the initial start-up costs.
- With only 42.5% of businesses still running after 5 years—likely decreasing due to coronavirus lockdowns—you should try to minimise costs as much as possible to set yourself the best chance of long-term financial success.
Guidelines for Estonian Entrepreneurs
The following are guidelines for Estonian entrepreneurs when engaging with the UK marketplace, covering both commercial sectors and public sector engagements.
UK Procurement platforms
There is a wide range of procurement platforms and tender portals for gaining access to public sector procurements and tenders.
UK Export Success Stories
The following examples provide an overview of at least one success story of international businesses successfully exporting to the UK market, covering all key growth sectors identified.
Strategies per sector
The Whitecap Consulting Export Strategy Sector Intelligence Pack for CleanTech offers valuable insights for Estonian companies aiming to enhance their export capabilities in the UK CleanTech sector. The key takeaways include:
- Market Attractiveness: The CleanTech sector in the UK presents significant opportunities for growth, with a favorable market size and growth potential. The market demand conditions are conducive for Estonian companies looking to expand their presence in the UK.
- Competitive Intensity: The competitive intensity in the CleanTech sector varies, with some sub-sectors experiencing medium competition while others face low competition. Understanding the competitive landscape is crucial for Estonian companies to position themselves effectively in the market.
- Market Access and Barriers to Entry: Accessing the UK market may pose challenges due to barriers to entry such as high capital intensity, market Access restrictions and lack of collaboration. Estonian companies need to navigate these barriers effectively to establish a strong foothold in the market and capitalize on growth opportunities.
- Sector Support and Funding Infrastructure: The availability of sector support and funding infrastructure can significantly benefit Estonian companies seeking to expand in the UK CleanTech sector. Leveraging these resources can enhance market entry and growth strategies.
Overall, the document emphasizes the importance of market research, strategic positioning, and leveraging available support mechanisms to drive success for Estonian companies in the UK CleanTech sector.
The Export Strategy Sector Intelligence Pack for the Cyber sector provides a detailed analysis of market attractiveness, opportunity landscape, and sector support for Estonian companies aiming to expand their presence in the UK market. Key takeaways include:
- Market Attractiveness: The report evaluates market size, growth potential, demand conditions, competitive intensity, and barriers to entry in the UK Cyber sector, offering valuable insights for Estonian companies looking to enter or expand in this market.
- Opportunity Landscape: A SWOT analysis highlights the strengths, weaknesses, opportunities, and threats for Estonian businesses, guiding them on leveraging resources, addressing limitations, and capitalizing on market demand to achieve a competitive advantage.
- Sector Support: The report emphasizes the importance of sector support and funding infrastructure, showcasing the availability of initiatives and programs from public and private sources that can aid Cybersecurity scale-ups in accessing funding and innovation hubs.
Overall, the report serves as a strategic tool for Estonian companies by providing a comprehensive overview of the UK Cyber sector, identifying growth opportunities, and outlining the support mechanisms available to facilitate market entry and expansion.
The Whitecap Consulting Export Strategy Sector Intelligence Pack for DeepTech highlights key insights for Estonian companies aiming to expand into the UK market. The key takeaways include:
- Market Growth Potential: The UK offers significant growth opportunities for DeepTech companies from Estonia, with a combined market size of £12.8bn in Artificial Intelligence and Immersive Technologies alone by 2023. Understanding market demand conditions and growth potential is crucial for successful market entry.
- Competitive Intensity: The competitive landscape in the UK DeepTech sector varies from low to high intensity, with factors such as robust IP laws, limited buyer choices, and high switching costs influencing the ease of competition. Estonian companies need to assess and strategize based on the competitive environment.
- Market Access and Barriers to Entry: Barriers to entry in the UK DeepTech market include existing players holding strong IP, brand identity, and customer loyalty, making it challenging for new entrants. Access to specialized knowledge, R&D investment, talent, and funding is crucial for overcoming these barriers.
- Sector Support and Funding Infrastructure: The availability of sector support and funding initiatives in the UK DeepTech sector varies, with some programs from public and private sources. Estonian companies should explore these opportunities to enhance their market presence and growth.
By leveraging these insights and understanding the market dynamics, growth potential, competitive landscape, and available support, Estonian DeepTech companies can develop a robust export strategy to successfully enter and thrive in the UK market.
The Export Strategy Sector Intelligence Pack for the EdTech Sector by Whitecap Consulting offers valuable insights for Estonian companies aiming to expand into the UK market. The key takeaways include:
- Market Attractiveness: The UK EdTech market is sizable, with a value of $4.68 billion in 2021 and expected growth by a CAGR of over 22% during 2021-2026. Positive customer opinions and key purchase drivers indicate a favorable environment for EdTech companies.
- Competitive Landscape: Differentiation strategies, early development focus, and integration of digital and physical products are crucial for standing out in the competitive market and building customer loyalty.
- Opportunities: The shift to online learning during the pandemic has created opportunities for innovative solutions like micro and nano learning through social media platforms and MOOCs. Leveraging these trends can be beneficial for companies entering the EdTech sector.
- SWOT Analysis: Utilizing a SWOT analysis helps in understanding market opportunities aligned with strengths and weaknesses. Estonian businesses can leverage their resources and capabilities to develop a competitive advantage in the UK EdTech market.
- Market Dynamics: Buyer power in the UK EdTech market is significant, with a wide range of options available for buyers. This freedom of choice allows buyers to select products and services that best align with their needs and preferences.
Overall, Estonian companies entering the UK EdTech market should focus on differentiation, innovation, and understanding customer preferences to succeed in this dynamic and growing sector.
The Enterprise Tech sector in the UK presents significant opportunities for Estonian companies looking to expand their presence. The key takeaways include:
- Market Growth: Market attractiveness is high, with a market size of over £52 billion in 2023 and a forecasted average growth rate of 5.65% from 2023 to 2028. Favorable market demand conditions, including research and development tax credits and increased investment by SMEs, further enhance the sector's appeal.
- Competitive Landscape: Estonian companies can benefit from the sector's competitive landscape, characterized by a large number of potential buyers in the 10-250+ employee range, particularly in sectors like Manufacturing, Wholesale and Retail, and Administrative Services. However, challenges such as data security, quality, and integration remain crucial considerations for businesses in the Enterprise Tech space.
- Strategic Sector Support: To succeed in the UK Enterprise Tech market, Estonian companies should focus on leveraging key technologies like data analytics, cloud computing, and AI to drive efficiencies and enhance customer experiences. Understanding buyer preferences for sustainability and providing clear information on product sustainability will also be essential for capturing market share.
Overall, by capitalizing on market growth potential, favorable demand conditions, and strategic sector support, Estonian companies can position themselves for success in the dynamic and competitive UK Enterprise Tech sector.
The FinTech sector in the UK presents significant opportunities for Estonian companies looking to expand their presence in the market. Key takeaways from the sector intelligence pack include:
- Market Growth Potential: The UK FinTech market is experiencing steady growth, with a diverse range of opportunities emerging in areas such as debt management tools, home buying support, and personal finance management solutions. Companies like Moneyhub, StepLadder, and ClearScore are addressing consumer pain points and driving innovation in the sector.
- Competitive Intensity: The UK FinTech landscape is characterized by a high level of competition, with both traditional financial institutions and innovative FinTech companies vying for market share. Notable players like Wise payments, Monzo bank, Funding Circle, and Plata Finance are leading the way, creating a dynamic environment for new entrants.
- Market Access and Barrier to Entry: While the barriers to entry in the UK FinTech market are moderate, companies without a strong brand presence may face challenges in establishing themselves. Big Tech firms like Google, Amazon, Facebook, and Apple are disrupting the sector, and regulatory hurdles pose additional obstacles for new entrants.
- Sector Support and Funding Infrastructure: The UK offers a range of sector support and funding initiatives for FinTech companies, both from public and private sources. Establishing credibility with UK companies is crucial, and channels like trade media, advertising, and trade shows play a significant role in gaining visibility and building relationships within the industry.
Overall, the UK FinTech sector presents a promising landscape for Estonian companies, with opportunities for growth, innovation, and collaboration with key players in the market. By leveraging strengths, addressing weaknesses, and navigating the competitive environment effectively, Estonian FinTech firms can position themselves for success in the dynamic UK market.
The HealthTech sector in the UK presents significant opportunities for Estonian companies looking to expand their export activities. Key takeaways from the Export Strategy Sector Intelligence Pack include:
- Market Attractiveness: The UK HealthTech market is sizable, with substantial growth potential and favorable demand conditions. However, competitive intensity and barriers to entry should be carefully considered.
- Sector Support and Funding Infrastructure: Estonian companies can benefit from engaging with organizations like the Yorkshire and Humber AHSN for guidance on legal, financial matters, and regulatory challenges. Collaboration with healthcare stakeholders during product development is crucial for alignment with future requirements.
- Overcoming Market Access Barriers: Understanding the NHS ecosystem, engaging early with key stakeholders like MHRA, NHSE, and NICE, and minimizing complexity can help companies navigate the market effectively.
- Enhancing Competitiveness: Agile revenue-driving strategies, broad value propositions, and patient-centric approaches are essential for success. Care pathway analysis, class of device awareness, and articulating a strong value proposition are recommended practices.
By leveraging these insights and strategies, Estonian companies can position themselves for success in the dynamic and promising UK HealthTech market.
The LegalTech market in the UK presents both opportunities and challenges for Estonian companies looking to expand their export capacity. Key takeaways from the Whitecap Consulting report include:
- Market Attractiveness: The UK LegalTech market is valued at £22 billion, with significant growth potential. Market demand conditions are generally favorable, indicating a promising environment for expansion.
- Competitive Landscape: The market is fragmented, with moderate to high barriers to entry, especially when targeting large law firms. Leveraging technology such as AI can provide opportunities to differentiate and save time in document processing.
- Market Access and Barriers to Entry: Entry barriers vary depending on the target market segment, with easier access to SME law firms compared to large firms. Building strong customer relationships and understanding sector-specific challenges are crucial for success.
- Sector Support and Funding Infrastructure: The Higher Education sector is showing increased interest in LegalTech, offering opportunities for collaboration and talent development. Established law firms are starting to offer graduate schemes in LegalTech/Innovation teams, indicating a growing focus on technology adoption.
Overall, Estonian companies can benefit from the growing LegalTech market in the UK by focusing on innovation, building strong relationships, and leveraging sector-specific knowledge to overcome entry barriers and capitalize on market opportunities.
The Modular Housing Sector Intelligence Pack by Whitecap Consulting offers valuable insights for those considering opportunities in the UK market. The key takeaways include:
- Market Attractiveness: The UK modular construction market is experiencing significant growth, with a market size of $79.92 billion in 2022 and a projected CAGR of 6.5% from 2023 to 2030. The government's target of 300,000 new homes per year by 2025 presents a substantial opportunity for modular construction solutions.
- Competitive Landscape: The sector is fragmented, with small-scale suppliers offering various modular components. This diversity provides buyers with a range of options in terms of designs, materials, and customization. However, no major players have dominated the market, leaving room for new entrants and innovative solutions.
- Market Dynamics: Factors such as the cost-of-living crisis and rising interest rates have impacted buyer behavior, with a decrease in home purchases in the UK. This presents challenges but also opportunities for modular housing providers to offer affordable and flexible solutions to meet changing consumer needs.
- Sector Support and Funding: There is a moderate to high level of sector support and funding infrastructure available from both public and private sources. Initiatives like the Home Building Fund and the Welsh government's Innovative Housing Programme provide financial support for modular construction projects, creating a conducive environment for investment and growth.
Overall, the modular housing sector in the UK shows promise for investors looking to capitalize on the growing demand for innovative and sustainable housing solutions. By leveraging market trends, addressing buyer preferences, and tapping into available funding opportunities, investors can position themselves for success in this dynamic and evolving market.
The Smart Mobility Pack Pack by Whitecap Consulting offers valuable insights for those considering opportunities in the UK market. The key takeaways are:
- Market Growth Potential: The sector exhibits significant growth potential, with subsectors like electric vehicles, drones, e-bikes/scooters, and autonomous vehicles projected to experience substantial growth by 2023.
- Competitive Intensity: The sector features a mix of established players and opportunities for new entrants to establish themselves, offering a dynamic competitive landscape.
- Market Access and Barriers to Entry: Moderate barriers to entry provide opportunities for growth while ensuring a competitive market environment.
- Sector Support and Funding Infrastructure: Robust government support and funding initiatives, particularly in the UK, create a conducive environment for innovation and technological advancements in Smart Mobility.
- Net Zero Initiatives: The UK government's commitment to investing over £1.2 billion in Net Zero initiatives underscores the sector's alignment with sustainability goals and innovation.
Investors looking to capitalize on the future of mobility and sustainability should consider the opportunities presented by the Smart Mobility sector.
The UK Market Day
The UK Market Day event held on the 6th of March at the Ministry of Foreign Affairs was a resounding success, providing Estonian companies with valuable insights into export and FDI strategies for the UK market. The whole event was a tangible result of an extensive collaboration process, funded by the NextGenerationEU, where the Ministry of Foreign Affairs, Enterprise Estonia and various stakeholders have worked together to deliver support and assistance to accelerate export to the UK.
The day’s highlights included:
- Opening remarks by MFA and Enterprise Estonia representatives: Priit Kallakas, Piret Sauter, and Arvo Anton.
- Insightful sessions on market entry strategies and export opportunities by UK experts Heiki Pant, Agaate Antson, and Stefan Haase.
- A dive into how to raise investments from the UK presented by Robert Lang from Invest Estonia.
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Inspiring stories from Estonian businesses like Salv and GScan that have already successfully navigated the UK market.
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Engaging panel discussion, including Ross Allen, Ambassador of the United Kingdom to Estonia, and Q&A session.
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Networking lunch and tailored consultations across various focus sectors.
The event marks a significant step for Estonian enterprises looking to expand into the UK market. Big thank you to our partner Whitecap Consulting Ltd and all the companies and industry experts who have contributed to this process.
The UK Market Day was the first of it’s kind from a series of events by MFA to continue supporting Estonian companies as they navigate their journeys of growth and expansion.
Presentations
The UK Market Day on YouTube:
The UK Export Strategy is funded by the European Union – NextGenerationEU
Last updated: 08.01.2026
