We live in challenging, complex times. Globalisation, wars, mass migration, terrorism and the sheer pace of technology change all combine to unsettle and worry large percentages of the population, both in the UK and across the world.
In suspicious eras such as these, trust in institutions and organisations is vital if people are to be reassured and helped to understand how change is affecting them. So the headline finding of the 2016 Edelman Trust Barometer – that levels of trust in UK government, media, business and NGOs have all risen – should be a reason for celebration. The Edelman study, now in its 16th year, surveyed 2,500 members of the public in the UK as part of a global sample of 33,000 people.
However, behind the headline figures there are two main causes of concern for those of us involved in communications.
1. Below average national trust
While the UK’s trust levels are at their highest since the recession (excepting in the case of NGOs), the country’s combined, cross-index score of 40% means it ranks amongst the ‘distrusters’, along with most of Western Europe, the US and Australia. The Chinese say they have the most trust in institutions (71%), followed by citizens of the United Arab Emirates (65%), and India, Indonesia and Singapore (all 62%). The global average is 48%.
The UK’s relatively low ranking is probably not a surprise. After all, we pride ourselves on taking a cynical attitude to the institutions around us, and this adds a level of public and media scrutiny that supposedly keeps politicians and business on their toes. Negative headlines sell papers, reflecting the national psyche and appetite for bad news. However, it also means that PR people, and other marketers, need to work harder to convince the general public that, actually, things aren’t that bad for the vast majority, particularly compared to many other places around the globe.
2. The trust gap
The biggest worry is the widening gap between the haves and have nots when it comes to belief in institutions. Edelman divided its sample into the ‘informed public’ (those with a household income in the top 25%, typically with university degrees), and the general public. Overall the gap between these groups in the index hit 17%, up from 9% last year, with the informed public trusting government, business, the media and NGOs much more than the rest of the population.
In many ways this isn’t unexpected – it is much easier to be happier with your lot if you have a cushion of money and education to fall back on. And the recession has seen widening inequality – figures released by Oxfam show that the richest 62 people in the world held the same wealth as the poorest half of the global population in 2015, equivalent to some 3.6bn people. Working a zero hours contract for a company that allegedly shifts its profits offshore to avoid tax is going to provide a radically different perspective to someone who is a manager in the same organisation.
But the big concern is the impact of this lack of trust. The rise of Donald Trump in the US, and the fact that Poles (the least trusting population at 34%) have just elected an ultra-conservative government that promptly replaced the heads of public broadcasters, shows the consequences of the rift between citizens and public institutions. In the UK this suspicion is evident on the forthcoming EU referendum – 61% of the informed public back Britain remaining, with 26% wanting to leave. In contrast nearly half (47%) of low earners favour leaving, and just 34% believe the UK should stay in.
The consequences of the trust gap are therefore potentially extremely worrying, with populists exploiting public fears to increase their share of the vote and shift the debate rightwards in many cases. It is up to communicators of every sort (whether working for government, business or NGOs) to address this gap, and look to educate the general population, both that current change is bringing positive benefits, and that issues can’t be solved through kneejerk reactions, such as building a wall between the US and Mexico. It won’t be easy as in many cases the devil has the best tunes, but it is vital if informed democracy and real debate are to flourish.
I don’t think there’s ever been a better time to launch a startup in the UK. The public profile of the tech industry is incredibly high, and those that create businesses are more likely to be seen as visionary entrepreneurs than cranks who couldn’t get a job in a proper company. Indeed, for those leaving university, setting up your own startup is a valid (if not as initially lucrative) alternative to becoming an accountant, banker or lawyer. I’m sure startups would complain that it is still difficult to raise money, or scale up their businesses, but it feels that there is now wide public and political acceptance of the importance of creating a culture that encourages startups.
Read the press and politicians’ speeches and there seems to be a relentless search to find the ‘European Google’ or ‘British Facebook’, multibillion dollar global companies that can become standard bearers for the industry. Alternatively, other European companies essentially mimic what is being done in the US, taking their business models, localising them and then hoping that first mover advantage will let them create viable businesses before the original enters the market.
The people that run startups are smart, as are the venture capital funds that back them. But are they looking in the right areas when it comes to creating new businesses – as an article by Liam Boogar in Rude Baguette recently asked “Where are the European startups to solve Europe’s biggest problems?” Leaving aside the question of whether Europe is cohesive enough that the same problems apply to life in Edinburgh, Athens and Bucharest, it is a valid point. What issues can be solved, first in Europe, and then expanded globally, to create thriving companies that benefit us all?
The article focuses on the need to shake-up the savings market, and with interest rates in many countries close to (or even below) 0% I can see the opportunity to transform the sector, such as through peer-to-peer lending.
However, what other areas would enable European startups to build global businesses? Thinking about the particular problems Europe faces, here are four that come to mind:
Across Europe, people are living longer and birth rates are falling. Longer lifespans increase pressure on health and social care services, as the elderly battle chronic diseases and poor health. While this isn’t just a European problem, it is one that startups can focus on, particularly given the public money currently being spent on healthcare research. Areas such as wearable monitors and the Internet of Things can potentially help improve the quality of care, even allowing people to remain in their own homes, rather than be treated in hospital.
From driverless cars to drones, technology is revolutionising transport. With its combination of major car and aeroplane makers, Europe is well-positioned to lead the way, but it needs an injection of startup energy and fresh thinking to succeed. Whether it is new ways of charging electric vehicles as they wait at traffic lights or smarter cities where you are automatically guided to the nearest parking space, there is plenty of scope for innovation, along with the chance to scale up to export the technology across the globe.
More than 6 million jobs were lost in the recession between 2008-13, and youth unemployment in many countries remains high. Many of the roles that were made redundant are simply not coming back as they have either been offshored to lower wage economies or replaced by technology. What are needed are ways to reskill European jobseekers so that they can compete in the global market. Much of this should be the responsibility of governments, but technology can help with new ways of training, new opportunities for collaboration and the encouragement of remote working to combat rural depopulation.
4. Cutting bureaucracy
All governments, of whatever political persuasion, seem to delight in creating red tape that tangles up citizens and businesses alike. And, despite the European Union, there is still a range of different measures that need to be met. Many countries have begun to put their services online, but more can be done, and in many cases nimble startups can get things done quicker than lumbering government departments.
I’m sure there are plenty more European problems that need solving, from the environment to education. These don’t just benefit society, but are potentially extremely lucrative as well. So the challenge for startups and entrepreneurs is to try and solve them – and at the same time we might create the European Googles that politicians are so keen on.