Starting or expanding a business is always a challenging task. Expanding your business internationally is even more difficult, especially since you have to consider the local regulations and understand the audience in that particular region. However, the UK is a business-friendly destination that hosts many startups and international corporations.
So if you want to expand your venture and enter the UK market, this article lists a few challenges and opportunities you should know about. When starting a business, it’s best to be fully prepared for everything that might come your way. Hence, consider the pros and cons of doing business in the UK.Â
Benefits of Doing Business in the UK
Countless international corporations do business in the UK, and there’s good reason for that. The region is open to global business expansion. Moreover, setting up a business in the UK also allows entrepreneurs to network worldwide despite the Brexit issue. So, let us see what benefits you can get when doing business in the UK.
1. Access To Four Regions
The United Kingdom is an island nation that has a dynamic marketplace. That is because the UK doesn’t refer to only a single region but the amalgamation of England, Scotland, Wales, and Northern Ireland. Keeping this in mind, it becomes easier for business owners to expand their venture in the region quickly. The private sector of the UK is booming, with 5,590,900 businesses and 32,840,000 employees, and there are many top business cities in the UK.
This is because businesses operating in the UK can network throughout the country. They access all those four regions and get to enjoy the unique advantages and features of all those regions. England is the fulcrum of the country’s economy. However, the other regions are pretty close. Depending on your particular business and industry, you can decide which region is best suited for you.
2. Access To A Strong Workforce
Running a business involves selling products, services, or ideas. A fundamental part of any venture is the workforce. It makes or breaks the business, and a good team is essential for taking a business toward success. For the same reason, the UK is a sought-after region for doing business, primarily owing to its highly skilled workforce.
As you might already know, the country hosts some of the most respected universities in the world and is the pinnacle of educational and professional excellence. Consequently, the workforce in the UK is highly educated and can contribute toward the success of your business. With more than 30 million workers, the UK is the perfect place to hire new employees when considering expanding. You can go through an employee directory and easily find the right human resources for your company.
Not only that, but the UK has a points-based, meritocratic system when it comes to immigration. Due to this, entrepreneurs get the opportunity to hire international employees, even those from non-EU countries. The process happens pretty smoothly without much hassle.
3. Ease Of Conducting Business
Another reason professionals prefer to expand to the UK is that the region is relatively much easier to enter than other areas of the EU. In fact, the World Bank often ranks the UK as a business-friendly nation because the restrictions and costs of doing business in the UK are comparatively less.
Not only that, but the country also has more commercial opportunities. It has a strong manufacturing background which is a great region for industries to flourish. Naturally, business owners become enthusiastic about entering this market full of opportunities. Furthermore, the business infrastructure in the UK is also excellent. The resources for energy, transportation, as well as telecommunications could be better, and more improvements are on the way.
4. Access To Culturally Mixed Population
The UK may not be so large in size, but it has a large population and is culturally mixed. Having a business is about getting your message across to a population and seeing prospects see how your company is right for them. You get a growing marketplace with many demands when you have a culturally diverse population.
People from different cultural backgrounds have other demands, which allows you to tap into that market. Additionally, having a diverse, multicultural population helps with hiring, and you get to have a diverse team that provides different opinions.
5. Non-ambiguous Workers’ Protection
The UK has clearly laid out workers’ protection laws, taking into consideration the problems faced by employees, and has well-defined laws, regulations, and rights for workers. As a business owner, you should view this as a plus point.
This is even more important since most other countries still need well-defined worker laws. Therefore, operating your business in a country that is clear about the laws is far better than in a country with ambiguous laws. Before you start your business, you will have a more clear idea about the rights and laws of your employees to avoid any future complications.
Challenges of Doing Business in the UK
As you can see from the list above, doing business in the UK is relatively easier than in most other countries. The marketplace is flexible, and the population is well-educated and diverse. That being said, it can be challenging. There are obvious challenges to running a business in the UK; we will discuss all that in this section.
1. The British Culture
When starting a business in a new place, you must be well aware of the cultural nuances of that particular place. If you already have a company in the United States, you might have noticed that the people there are more easy-going and friendly. However, the same cannot always be said about the UK. People in the UK often come off as rude and cold, which can be a difficulty when trying to break through a population and establish your business.
British people can sometimes seem reserved at first, especially if you are more accustomed to doing business in the US. Due to this, you may not know how to navigate through the customer base and establish your business. Proceedings can take more time than expected, which is yet another issue. When you need help with the culture of a new region, the best thing you can do is wait and understand how everything works in that region. It might take more time, but sometimes that’s the only way.
2. Paying Taxes
The tax system in the UK can sometimes be a pain and often be too archaic. This is because the tax laws have been established in bits and pieces, and the worst part is that there have been no recent changes. Not only that, but the tax system is quite tricky too. In fact, on average, it can take you up to 100 hours just to meet tax obligations. Be it council charges, PAYE obligation, or corporation tax, the whole process is sometimes overwhelming, making it extremely difficult for business owners.
Therefore, it is recommended that before you start up in the UK, it is best if you are familiar with the tax system of the country. Moreover, having local tax support can come in handy so that you stay aware of the situation.
3. Getting Electricity
Another major challenge of setting up a business in the UK is the electrical system. It can be pretty challenging to run a business without proper Electricity, and getting Electricity for the first time is a pain. It can take around 50 days just to finish all the proceedings for a new premise. When running a business in a new place, time is of the essence, so this can be a big problem.
The British electrical system is not easy to work with. Not only are there many delays, but the prices can also be high, adding to your total costs. Plus, the connection process is hugely complicated, further worsening matters.
Final Thoughts
When expanding your business internationally, you must know the ins and outs of the region to be well prepared. If you are considering expanding to the UK, you can rest assured knowing it’s a good decision, especially since it’s a business-friendly country. And, while there are challenges, they can be easily tackled.
