There are a plethora of examples of multi-national companies that preferred the UK over other countries in Europe for starting or expanding their tech business. The UK is a dreamland to start a Technology business.
The UK offers an excellent opportunity for investors and businesses on all factors, be it reaching out to more customers or reduced cost of operations and taxes. It is the reason why many tech start-ups are coming up and have come up over the past few years.
This is the reason why the UK is a dreamland to start a Technology business being referred to as the upcoming technology hub of the world.
Many tech start-ups have made it big in the global arena, with their products being in demand in almost every corner of the world. If you are an entrepreneur who has a business idea but no money to start a company, then also the UK will not disappoint you.
If you say to yourself that you need money now, then there are many direct lenders available online which offer bad credit business loans to even subprime borrowers. These loans are super quick; with the amount getting disbursed on the same day, the loan was approved.
Taking Our Discussion Further
The technology industry of the UK was also highlighted by the then Prime Minister Theresa May, who said, “The performance of our digital tech sector has been world-leading.” This country has always excelled in technology inventions for many centuries now, let alone decades.
A testimony to that is, the UK proudly boasts of inventing World Wide Web (WWW), Telephone, Radar, Geostationary Satellite, ATM, to name a few. Thus it would be right to say that this romance between technology and this country is as old as time.
The tech sector of the UK is worth around £184 billion as of July last year, and one surprising fact is that this tech industry is progressing at double the pace of economic growth since 2017.
The cutting-edge technology developed and employed by companies here is proving its mettle, and the country is one of the front runners in the race of digital disruption. Be it artificial intelligence or Blockchain, be it machine learning or robotics, all these modern technologies are used in companies and even in start-ups here.
All this would not have been possible without a proper technology infrastructure and modern facilities. And in turn, that would not have been possible without the government’s intervention and support.
Technology companies in the UK have been fortunate on this front as the policy support and the business environment is conducive. The government here has made technology a core component in its modern industrial strategy, and they are heavily investing in innovation and R&D.
The Government is Taking Efforts More in the Right Direction
The Government has directed banks and also direct lenders to provide fast loans with no guarantor to small and medium companies and also start-ups to foster a culture of innovation.
This, coupled with the availability of young talent, many of whom are tech aficionados, entrepreneurship culture, is the driving force behind this tech juggernaut in the UK.
Additionally, there are policy measures in place with a friendly taxation system, fewer stringent regulations, greater flexibility for experimenting, and robust infrastructure for development and testing. What more can you ask for as a business from a country?
The VC/PE investors, local and foreign commercial banks, are also not shying away from funding these potential technology giants. According to a Reuters report, investment in the tech sector of the UK surged by 44% to £13.2 billion in 2019. This is roughly one-third of the total funding received by Europe in the same year. Also, there is an unprecedented rise in R&D expenditure by the public as it jumped by £7 billion. Now, we better understand why a new business opens up every 75 seconds in this country.
Companies based in the UK continue to astonish everyone even today, be it Deep Mind, an AI stalwart or, Dark Trace, a unicorn status cyber security-based start-up. The UK is proud to host some of the big names of the tech world, which are renowned globally.
Even in the financial services space, many FinTech start-ups in the likes of mobile-only banks like Starling Bank, cloud-based payments companies, open banking providers, etc. are being recognized globally.
In the Nutshell
The UK also has the lowest tax rate for corporate among all the G20 countries, and it stands at 17-18% apart from other incentives and rebates. If you are a tech company with patented innovations under your name in the UK, then you have to pay a meager 10% corporate tax on your profits.
Your company would not get such modest tax rates and business environment anywhere in the world. Therefore, what are you waiting for, start working on your business idea and approach a direct lender or a commercial bank for initial funding to start the business. The UK is a dreamland to start a Technology business.