The Challenges And Opportunities Of Doing Business In The UK
The United Kingdom, popularly known as the UK, provides opportunities for companies and businesses in several quantities. This is so because the United Kingdom is a stable and strong economy which has a large customer base and is accessible to international markets as well. Yet, certain challenges are faced by organisations in the UK.
These are discussed below –
- Effect of Brexit – The UK got separated from the EU in 2020. The actual effect of Brexit on doing business in the UK has yet to be fully determined. This is challenging because of the epidemic, which ascertained the impact of Brexit on doing business. Lack of labour deepening, restricted trades and additional checks on customs are the most important problems faced by marketers in the UK after the departure of the UK from the bloc. As the nation started moving ahead of the pandemic after leaving the opportunities and threats of Brexit, rules and regulations, have to be developed by the parliament of the UK, and it is important to figure out how these rules and regulations will help shape the future of the UK. Updating the legislation, rules, and regulations for doing attractive business in the UK is significant.
- Starting a business – To start a business in the UK takes 48 hours, but completing all the administration processes takes almost 18 days. Companies of foreign countries entering the UK market have to be aware of the accounts of all the UK organisations, which are subject to public disclosure by the company’s registrar. Even though some minimal amount is charged, the quantities of the process make the procedure strenuous for starting companies.
- Resourcing – This economy is well known for its highly skilled and internationally mobile workforce, which also aids in the advantageous supply of hospitality and European retail staff. After the vote of Brexit, a reduction in the number of Europeans who applied for the roles of hospitality and UK retail is determined. Also, there exist restricted answers to the questions raised by the skilled workforce regarding their rights in the future as, at this time, the UK has separated from the European Union. Irish nationals are the exceptions who live in the UK with the right to work and live in the country via a route which does not show them as nationals of the European Union; EEA countries will need a visa to get permission to work and live in the UK as the Brexit has come. To ease the organisation’s entry into the UK markets, getting support from the TMF group is significant.
- Permission of construction and property registrations – Working under construction is more effective in the United Kingdom, which takes almost 100 days and needs only nine processes to complete. Attaining permission for planning from the pertinent authorities to get connections for water and sewerage takes the most time and is the most costly item. Therefore, property registration is one of the most difficult business tasks in the UK.
- Getting electricity – The power networks of the UK handle and manages the connections of the electricity, and it takes around 50 days to finish setting up a new business in the country. This also includes submitting plans, procuring inspections, and waiting for the works of the external connections to be worked upon. Deciding a supplier for electricity along with the best and most affordable price rates for the business set-up is also difficult in the country.
- Getting credit – The country’s diversified nature and powerful financial system acquires credit given to developed companies and startups and gives access to the fund’s organisations and businesses need. Yet, there is a need to understand what credit type will better suit which type of business is also a complex task that needs assistance.
- Protecting investors – Strong financial environment and solid agreements explain that the investors are protected in the country even though it is significant to take assurance and conduct assiduity thoroughly when the country is growing.
- Paying taxes – The country’s tax system is large and tricky. This is so because the country’s legal system is created in fashion piecemeal, which takes almost 110 hours every year to finish all the important tax obligations, including anything from labour and corporate fees to sales and environmental taxes. Local tax support can ease this burden, a critical factor in the United Kingdom.
- Resolving insolvency and enforcing contracts – The legal system of the UK has developed a relatively seamless procedure for resolving insolvency and enforcing contracts which almost takes 440 days. This time is taken for enforcing the contract, and almost 1 year is taken for resolving insolvency. Both periods are less than the average of the Organization for Economic Cooperation and Development (OECD).
- Cultural barriers – As time is an essential element, coming to a final decision takes a lot of labour and is a slow process involving many layers of bureaucracy and multiple parties working together. Significantly, the introductions of businesses are getting started with the help of a third party. And novel businesses are getting progressive day by day.
Certain opportunities for doing business in the United Kingdom are discussed below –
Stronger economy – The United Kingdom is considered a financial hub and the 6th largest economy in the world. It consists of the most stable economic atmosphere and a transparent regulatory framework that makes the economy attractive for setting up the business.
Highly skilled workforce – The economy has an educated and highly skilled labour force, making it easier for companies and businesses to determine the accurate talent for a job role. The renowned universities of the nation help produce a large number of talented graduates in different areas of study, giving a significant number of skilled workers.
Access to European markets – After the separation of the UK from the European Union, the country still permits the market of Europeans. This is so because it has to deal with the trade contract with the European Union. This also permits the companies and businesses to take advantage of the large customer base of the nation and flawless trade with the member countries of the European Union.
Entrepreneurship and innovation – The country has a long history of entrepreneurship and innovation by setting up many successful entrepreneurial activities of startups starting from the nation. There also exists an ecosystem for startup companies that supports them, providing access to mentorship, funding, and favourable conditions for business.
Financial services industry – The centre for global finances is London, which has numerous industries related to financial services. This gives the organisations to have access to the chance to do business in insurance, banking, fintech companies and asset management to get access to capital and the advice of experts.
Connectivity and infrastructure – The country has developed infrastructure involving modern transportation networks, reliability in energy supply and advanced telecommunications systems. This also makes sure regarding the efficient operations of the business as well as connectivity both internationally and domestically.
Cultural diversity – This country exists with a multicultural society with a large population living in the nation. This explains that the businesses that have the chance to serve various preferences of consumers and inspect the niche markets.
Well-regulated environment business – The country has a strong regulatory and legal system that assures fair competition and safeguards the business`s rights. This provides confidence and stability to emerging entrepreneurs and investors in the company.
Government support – The country’s government has organised many supporting incentives and programs which encourage the business’s investment and growth, especially in sectors like renewable energy, research and development and technology.
Quality of life – The country provides the citizens living in the nation with a high standard of living along with the features of excellent healthcare, cultural amenities and education. This promotes talented professionals and works as a benefit while retaining and recruiting skilled workers.
In summary, starting a business in the United Kingdom has both opportunities and challenges as the nation provides a legal environment and a stable political system consisting of a highly skilled and talented workforce with access to the global market. Several more challenges exist, like increasing competition, potential disruptions and high taxes because of Brexit. Yet, with adaptation and proper planning to the changing business landscape, companies can still determine success in the markets of the United Kingdom. It is significant for businesses to tackle the challenges, focusing on leveraging the opportunities by considering them and being flexible in adapting strategies to manage the difficulties of doing business in the markets of the United Kingdom.
Author Bio: A prominent company that offers top-notch assignment writing services to students, Academic Assignments employs Mark Edmonds as a professional writer. Mark digs into “The Challenges And Opportunities Of Doing Business In The UK” with a keen eye for trends and a deep interest in business. He is well-equipped to provide entrepreneurs and aspiring professionals with insightful advice, given his in-depth understanding of the UK business sector. Through his outstanding work, Mark hopes to inspire students to succeed in their academic endeavours and to foster greater comprehension of the intricacies of the business world.