5 Reasons Why UK is the top destination for starting your business

Thinking of starting your entrepreneurial journey but can't decide which country to reside in? You're not alone! With so many attractive destinations around the globe, it's a tough call. However, the UK stands out as a prime location for budding entrepreneurs, and for good reasons too. In this blog, we're going to take a closer look at why the UK should be at the top of your list for launching your business.

Top Destination Reason 1:  Innovative Ecosystem

The UK is a playground for innovation. It is home to some of the world's most prestigious universities, bustling tech hubs, and research centers that are pushing the boundaries of what's possible. Ready for a few fun facts to get you excited?

• The UK's tech scene is on fire! In 2021 alone, UK tech companies secured $15 billion in venture capital funding, placing the UK third globally behind the US and China.
• London isn’t just about the iconic Big Ben or the bustling streets; it’s also one of the globe’s premier spots for startups and innovation, rubbing shoulders with the likes of Silicon Valley and New York.
• Talk about backing brainpower—the UK government is ramping up its R&D spending to 2.4% of GDP by 2027. They’re serious about keeping the UK at the forefront of science and tech.
• The UK is home to four universities in the global top ten, according to the QS World University Rankings 2023, including the University of Oxford and the University of Cambridge. It’s not just about the old-world charm; these places are innovation powerhouses.

What does this mean for you?

Being in the UK puts you at the heart of breakthrough technologies and research. This means you can be first in line to apply new discoveries and tech advancements directly to your business, giving you a competitive edge that's hard to beat.

Top Destination Reason 2: Easily accessible to funding

As we mentioned earlier, the UK has a record levels of VC funding. London, in particular, has been at the forefront of this activity. The city has consistently ranked as one of the top cities in the world for VC investment. Cities such as Manchester, Cambridge, Edinburgh, and Bristol have also seen significant investment, driven by their own tech clusters and innovation ecosystems.

Beyond venture capital, there's a whole world of funding opportunities waiting for ambitious entrepreneurs in the UK. We will list a few for your reference:

• Digital Growth Grant Program: This program aims to support digital and tech startups and scale-ups across the UK. The successful provider of this program will receive a £12.09 million Digital Growth Grant from the government to run a scheme that offers skills training, advice, and improved regional support networks for startups, particularly focusing on emerging technologies like artificial intelligence and quantum computing. This initiative is designed to create more regional tech hubs, offering high-skilled jobs and benefiting startups outside major cities​​.
• Innovate UK’s SMART Grant: This grant program allows successful startups to receive up to £25 million in funding for game-changing and commercially viable R&D innovation that significantly impacts the UK economy​​.
• Enterprise Investment Scheme (EIS): The EIS aims to help small, higher-risk unquoted trading companies raise capital. Investors can claim Income Tax relief of 30% on the amount subscribed for EIS shares, with a maximum relievable investment of £1 million per annum, or up to £2 million if the additional £1 million is invested in ‘knowledge-intensive’ companies. Capital Gains Tax (CGT) exemption is also available on the disposal of EIS shares, alongside CGT deferral on gains made on other assets. In 2021-2022, 4,480 companies raised a total of £2,305 million through the EIS, the highest in a single year since the scheme's inception. The trend has shown a steady increase in EIS use since 2010​.
• Seed Enterprise Investment Scheme (SEIS): SEIS offers similar tax reliefs as EIS but is specifically targeted at smaller, start-up companies. The scheme provides tax reliefs for investors who invest money into eligible companies. These reliefs include Income Tax and Capital Gains Tax advantages.
• Small Business Research Initiative (SBRI): This initiative connects innovative businesses with government institutions to address societal challenges. SBRI typically invests up to £100,000 to test an idea and up to £1 million to develop a prototype. More than 66% of the funding grants have been awarded to SMEs since the program’s inception​​.
• UK Research and Innovation (UKRI) Innovation Grants: UKRI offers various funds to support projects in areas aligned with the UK government’s industrial strategy, such as clean growth and AI. Grants can range from £20,000 to £4 million per project​​.
• R&D Tax Credit: This tax incentive promotes UK businesses investing in innovation. There are two separate tax credit schemes: one for SMEs and another for larger businesses. SMEs can claim up to 33% of their R&D costs in cash​​.
• Start Up Loans: The government offers unsecured personal loans ranging from £500 to £25,000 to start or grow a business. These loans come with a fixed interest rate of 6% per year and can be repaid over a period of 1 to 5 years. Applicants also receive free support and guidance to write their business plan and up to 12 months of free mentoring​​.

What does this mean for you?

This opens up a world of funding opportunities for you, from venture capital and crowdfunding to government grants and competitions, making it super easy to find the financial support you need, no matter the route you choose.

Top Destination Reason 3: Strategic Location

Let's talk about one of the UK's superpowers: its unbeatable strategic location. 

• Gateway to everywhere: Nestled perfectly between the East and the West, the UK opens doors to markets across the globe. Whether you're eyeing Europe, itching for expansion across the Atlantic, or aiming to connect with Asia, being based in the UK puts you in the heart of the action.
• Time Zone Magic

The UK's time zone is like having a VIP pass in the world of international business. Picture this: you're in a place where you can sip your morning tea while catching up with clients in Asia, and by the time you're enjoying your afternoon cuppa, you're strategising with partners in the Americas. That's just everyday business in the UK. You get to work across multiple markets in one business day – talk about efficiency!

• Europe and Beyond

Even post-Brexit, the UK's relationships and trade deals offer businesses a launchpad into Europe and other markets, keeping the doors wide open for trade and collaboration.

What does this mean for you?

This opens up a world where you can effortlessly dive into new markets. It means you've got the flexibility and efficiency to span across various markets all in a day's work, making it a breeze for entrepreneurs to juggle multiple time zones and business opportunities without breaking a sweat.

Top Destination Reason 4: Access to Global Talent

One of the UK's standout features for entrepreneurs is its incredible access to global talent. This isn't just about finding the right people; it's about finding the best minds from around the world, all converging in one dynamic, diverse melting pot. Let's dive into why the UK is a magnet for top talent and how this benefits you as an entrepreneur:

• World-Renowned Universities

The UK is home to some of the planet's most prestigious universities, including Oxford, Cambridge, Imperial College London, and the London School of Economics. These institutions attract bright, ambitious students from every corner of the globe, creating a rich pool of graduates equipped with cutting-edge skills and innovative thinking. For startups and businesses, this means access to a continuous stream of fresh talent, ready to bring new ideas and energy to your ventures.

• Multicultural Workforce

The UK's workforce is one of the most diverse in the world, reflecting a wide array of cultures, languages, and perspectives. This diversity isn't just good for fostering a dynamic workplace culture; it's a boon for creativity and innovation. Teams with diverse backgrounds bring different viewpoints and problem-solving approaches, leading to more innovative solutions and a broader understanding of global markets. 

• Tech and Creative Hubs

Cities across the UK, from London to Manchester, Bristol to Edinburgh, have established themselves as hubs for technology and creative industries. These vibrant communities attract professionals in tech, digital media, design, and more, offering a fertile ground for networking, collaboration, and recruitment. Being part of these ecosystems provides startups with the opportunity to connect with like-minded individuals and tap into a wide range of expertise.

• Highly Skilled Workforce

The UK's workforce ranks in the top 10 globally, outshining most major European economies with its high level of education and expertise. This is fantastic news for businesses on the lookout for skilled pros. Especially in fields like professional, scientific, and technical activities, and information and communication, which boast impressive Qualification Index Scores of 3.49 and 3.41, respectively. It's a clear indicator that the UK is a hotspot for top-tier talent

• Supportive Immigration Policies

The UK's immigration policies, including the Skilled Worker visa and the Global Talent visa, are designed to facilitate the entry of highly skilled professionals into the country. These policies ensure that businesses can recruit from an international talent pool, bringing in the expertise needed to drive growth and stay competitive on a global scale.

What does this mean for you?

This means that assembling your dream team just got easier! You're perfectly positioned to connect with incredibly talented individuals with a diverse range of skills.

Top Destination Reason 5: Favourable Business Environment

The UK shines as a top pick for expanding businesses, thanks to its smooth, entrepreneur-friendly vibe. Scoring an impressive eighth in the World Bank's ease of doing business rankings, the UK stands out with its efficient rules and supportive business atmosphere. Here's the scoop:

• Quick Company Registration: Setting up shop in the UK is a breeze, with a straightforward online process that gets you up and running in just hours. Plus, it's super welcoming to international entrepreneurs, setting it apart from many other places.
• Clear Rules of the Game: Expect no surprises with the UK's transparent regulatory framework, making it easier for you to stay on top of legal stuff.
• Financial Services Galore: London's not just a tourist gem; it's a financial powerhouse offering easy access to banks, venture capital, and investors—perfect for fueling your business's growth.
• Tax Perks: The UK's tax incentives, especially for R&D and startups, mean more money stays in your pocket, helping your business grow.
• Trusted Legal System: With a globally respected legal system, you can have peace of mind about protecting your business, enforcing contracts, and resolving disputes.

Innovator Founder Visa

The Innovator Founder Visa presents a gateway for visionary entrepreneurs aiming to establish their ventures in the UK. This visa opens doors to opportunities for innovation, growth, and success within a supportive business environment. Our Innovator Founder Visa endorsement service OMLAS, is the perfect aid for aspiring entrepreneurs when trying to navigate the complexities of starting a business in the UK. We offer personalised guidance and expertise to ensure a seamless and efficient process for business initiation and development. To book your free 30 minute consultation with one of our specialists click here.

Conclusion

In a nutshell, the UK isn't just a picture-perfect place; it's a launchpad for entrepreneurs aiming high. With easy business setup, a nurturing environment, and abundant resources, it's primed for your innovation and expansion. Eyeing global success? The UK welcomes you. 

Plus, the new Innovator Founder Visa scheme introduced in 2023 opens doors for ambitious entrepreneurs to set up in the UK. Interested in seizing this opportunity? Book a consultation with us to dive into the application process and kickstart your journey.