Two-thirds of startups ill-prepared for GDPR

Two-thirds of startups ill-prepared for GDPR

A survey has revealed that many startups are not very well prepared for compliance with the EU’s forthcoming General Data Protection Regulation (GDPR).

The survey found that 91% of more than 4,000 startup companies polled, mainly in the UK (48%) and France (13%), admit to collecting personal data, but many rank poorly in terms of readiness for the EU’s GDPR.  

According to the survey commissioned by email service provider Mailjet, the average GDPR-readiness score was 4.1 out of 10, with the banking and insurance sector scoring the highest (4.4) and construction and real estate scoring the lowest (3.2).

The proportion of startups collecting personal data from their clients is highest in the banking and insurance sector (93%) and lowest in the hospitality and tourism sector (85%). With only 8% difference across all sectors, however, it appears that personal data collection is at the core of most startups’ business.

Pierre Puchois, Chief Technology Officer at Mailjet, said: “Launching a startup today means doing so amongst a sea of pre-existing regulations, and the best founders won’t ignore this. They have an opportunity to build their systems right from the very beginning and avoid penalties such as the GDPR will impose,”

He added: “Attaining the highest levels of data privacy and security is accomplishable by startups and small to medium-sized businesses, not just the big guys,”

UK Information Commissioner, Elizabeth Denham, has repeatedly said that good data handling practices should be seen as a business enabler and opportunity.

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