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It's amusing that you used Uber as an example as Bolt is a direct competitor to Uber that is founded and operated in Estonia, but other than that, your purporte
by ygjb 2y ago
It's amusing that you used Uber as an example as Bolt is a direct competitor to Uber that is founded and operated in Estonia, but other than that, your purported advantage is pretty meager.
Assuming you build a product custom tailored to Estonia's unique regulatory requirements that is targeting primarily business users, then you are targeting a maximum market of 324,000 businesses. It's realistic to assume, given Estonia's population of 1.32M people, that most of those businesses are sole proprietorships or small businesses that will not have any IT or service department to support them. Building a successful, competitive product in this fashion requires protectionist policies that favor a local product, and those policies will often run afoul of public tendering rules. At least with Germany, you are dealing with a much larger scale (~84M people, and ~5.3M businesses).
It is certainly possible to build and operate a service that would target Estonian, or other small countries, specific regulatory requirements, but the size of the potential market is extremely small, and the path forward to build a competitive service is to abstract away Estonia specific regulations so that you can build country/regional specific versions.
All that said, assuming you are successful in building a business that accomplishes an "X" product for "Y" market model, the entire success of the business is predicated on a market that is created by differentiation in regulation, and your product benefits from lobbying for eliminating those differentiation.
Optimizing for small, local markets is definitely a path to success for some businesses but it's not an easy one, and it doesn't seem like a reasonable investment for growth oriented startups that seek to compete in a global marketplace.
- ghusto 2y ago> it doesn't seem like a reasonable investment for growth oriented startups that seek to compete in a global marketplace This last thing you said is worth pondering more on. Many places are happy not growing, doing what they love, in a way that suits their workers lifestyles. They can afford to stay small and protected, at the cost of needing to be locally focused, and they love it.