Why UK Is A Good Place To Start Your Business
Did you know that 99 per cent of UK commercial companies are small and medium-sized enterprises? You can check BritainReviews for statistics and read about different UK businesses. Throughout the country, hard-working people run their businesses, deliver products and services to their customers, create jobs for local people, and provide their communities’ foundation. Many of these are recent startups – new companies dreamed of young entrepreneurs who are willing to build a new life for themselves in self-employment.
These are the reasons the UK is a great place to start a business:
1. It is easier to start a company
Some era ago, starting a company was a difficult and expensive operation. To have a viable business, you need physical premises to function from, and that would naturally involve overheads such as rent and utilities. Knowing that your business may struggle to make a profit in the first year, you would require a significant amount of cash to invest in your business from the outset.
But these days, with the Internet’s initiation, it is possible to start a business at different stages. Instead of opening a shop on your first day, you can start trading online using your home computer. When you finally have many profits to set up an office, you can read Office supplies UK companies reviews to have a good set up.
It is not costly to register a new company with Companies House – just £15 if you apply online, or £40 per post.
2. The government is in favour of industry
With the Conservative government in place in the United Kingdom, the emphasis is on building up the private sector and enabling companies to drive the economy. Since the 2015 general election and the five-year Con-Lib coalition in government – ministers have been keen to help entrepreneurs and allow more individuals to start their own companies. They have achieved this by lowering the corporate tax rate, adding benefits to companies registered and working in the United Kingdom. Small companies pay a 20% corporate tax rate in 2015, but this is set to decline to 18% from 2020.
3. Interest rates are low
The Bank of England has retained its base rate from which interest rates are extracted at an unprecedented low of 0.5 per cent. In addition to quantitative easing, which has seen additional finance ‘injected’ into the economy, this policy has helped keep business costs down and promoted investment. With inflation still relatively low, new companies will get a ‘bang for their bucks.’ Startups with limited capital will find their money expanding a little further, allowing more businesses the ability to develop themselves and set up stable foundations.
4. Investments are available
The banks are slowly but steadily beginning to return to UK small businesses again. During the recession and the economic downturn that followed, credit was challenging to get from conventional lenders. Still, as the economy stabilized, banks began to regain the confidence to lend to small businesses.
The UK has an increasing alternative finance market, where private investors provide growth credit to innovative young companies across various models and platforms. Many entrepreneurs are now turning to crowdfund, angel investing, and other ways to raise money rather than asking their bank manager for a loan.
5. The technology is already in operation
Most new startups that are being set up in the UK are technology-based or rely on technology to some degree. Thousands of small online companies have been set up over the past few years as eCommerce has become a multi-billion-pound industry. The only thing you need to start selling online is a computer, an internet connection, and a website – along with something to sell to your customers. It is possible to reach out to customers in every corner of the globe via the Internet.
6. Customers are moving back to small businesses
Startups cannot compete with large multinational firms in price and product selection, but they may distinguish themselves in quality and buyer service. Many people are sick and exhausted from going to the store for the same sterile shopping experience that has been standardized worldwide. Rebelling against giant business rampage, they return to small businesses, searching for something more tailored and personalized.