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What are the benefits of being GDPR compliant?

Making your startup GDPR-compliant, not only means that the startup avoids large fines, but also brings immense benefits! In this article, we walk you through those benefits to convince you to rethink your startups data protection policies. 

#1. Avoiding fines

Under the GDPR, companies are subject to fines if they mismanage personal data whether it be purposefully or negligently. These acts can range from not meeting set deadlines or incorrectly processing a data subject’s information. Unexpected costs for a startup could be its downfall. Therefore making it is extremely important to ensure the company complies with the provisions in the GDPR. 

There are two levels of fines that companies avoid when they are GDPR compliant. Lower-level fines cost that of 10 million euros or 2% of global turnover, whichever is the higher option. Alternatively the higher-level fines cost 20 million euros or 4% of global turnover. The lower-level fines are applicable when less serious data protection violations occur, such as not adhering to the obligations of processors and controllers found in Articles 25-39. Meanwhile, the high-level fines are applicable to more serious data protection violations. An example is the unlawfully processing data without the data subject’s explicit consent. 

#2. Improved cybersecurity

It is impossible to eliminate digital security risk when carrying out activities in a digital environment. Furthermore, data breaches are an expensive burden that many companies cannot afford. However, it is possible to mitigate those risks with the implementation of digital risk management which is found in the GDPR. 

Compliance with the GDPR entails companies to adjust their security systems, outlining their operational strategy in the case of data breaches. This helps companies reduce the impacts of data breaches as they have already considered steps to protect the data within their online platforms. 

#3. Attracts clients 

In this digital age, people have become more aware and informed of the importance of their personal data. With the Cambridge Analytica scandal and the exposure of economic exploitation of data by companies, credibility of companies have fallen, driving users to delete profiles and/or stop using online services, reluctant to share information. This in turn, is resulting in economic losses for companies financially dependent on the generation of data, from social media platforms to companies that sell goods and services online. 

There is a need to increase trust in users of online services in which data protection acts as a competitive advantage for companies which adopt high standards. Compliance allows companies to show their commitment to transparency and protecting data, increasing user’s trust in the system. Individuals concerned data protection are more likely to use online services that are compliant with the GDPR.

#4. Improved management of data 

Data minimisation is one of the requirements under the GDPR, which means companies are compelled to eliminate data that is incorrect or no longer serving the initial purpose. A clean database entails only active subscribers will remain on the platforms, leaving the company with an engaged and genuinely interested users or clients. Furthermore, data must be kept up-to-date, which is useful to talk to users and clients. 


Companies need to approach the GDPR not as a regulatory burden but as a benefit for themselves and their clients. As companies continue to evolve, becoming more digital and technologically oriented, the obligations placed by the GDPR help companies prepare for unforeseen consequences. Being GDPR compliant is not only an obligation placed by EU law, but also brings great advantages to companies which benefits consumers!

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