GDPR Compliance Challenges and How to Overcome Them

Abstract

Startups and SMEs need focus, particularly technology startups; although they are fueled by innovation and advancing technology, they require improved data protection practices. This research seeks to collect data regarding the awareness of startups about the GDPR, pinpoint the main challenges encountered by technology startups in Catalonia since the GDPR's implementation in May 2018, and investigate (1) the potential correlation between the identified challenges and factors such as the number and type of employees hired, the size of the startup, the business sector, and the year of establishment; and (2) the resources, both time and financial, that startups have allocated towards compliance. The literature review identified gaps in the research and served as the foundation for examining the challenges encountered by startups due to the enforcement of the GDPR. Thirty-two challenges were identified concerning GDPR and categorized into four constructs: compliance costs, regulation complexity, government support, and process adaptation. The lack of adequate government support poses the greatest challenge for the Catalonian startups involved in the survey. This study represents one of the initial empirical investigations into GDPR compliance efforts and challenges faced by Catalan technology startups. It employs advanced statistical analysis techniques, beginning with ANOVA, and includes independent sample T-tests, correlation analysis, and regression analysis. Regrettably, the results cannot be generalized to all startups in Catalonia due to the failure to meet the required minimum sample size for representativeness; 116 responses were collected, whereas 314 were necessary to achieve the appropriate sample size. Nonetheless, this research offers a practical contribution by (1) presenting recommendations that enhance technology startups' understanding of the various challenges they need to tackle in order to comply with GDPR and (2) offering suggestions for the Catalan government to promote startup GDPR implementation.