“Should I try to grow my business in the UK?” It’s a question I am often asked and my answer to you, as someone who might currently be investigating your options in the UK, is simple: success breeds success. In the UK, you would be following in the footsteps of literally thousands of people and companies who have made this relationship the vast economic partnership
it is today.

The UK is one of the most mature, open markets in the world. This brings many benefits, but it also brings challenges. For example, even before you begin, you should assume that there is tough and well-established competition – whatever your field – from both local companies and third countries.

A lively environment is also encouraged by consistent government efforts on tax reform, privatisation of state-owned utilities and industries, and recently-deregulated, world-renowned financial services, telecommunications and transportation industries.
There are very few sectors in which foreign ownership is limited and there is no restriction on the repatriation of capital and profit. Job creation continues to be a focal point of policy and it particularly welcomes companies who would be able to help. From an US point of view, the result is an environment that, while not identical to the US (there are some important and sometimes unforeseen differences), is familiar enough to make the transition relatively smooth, with good advice.

While the UK uses the pound sterling and not the Euro, companies need to be aware that EU regulation has a significant impact. Relative to the rest of Europe, the UK has been generally successful in maintaining flexibility in terms of its labour market and avoiding European directives that place extra burdens on business. The country has generally maintained its position as one of the most accessible gateways, particularly for US business, not only to the UK, but also to the rest of an expanding Europe.

Thanks to the fact that the truly two-way nature of this relationship is recognised right from the top of the country, in the form of government support for investment outreach through to important organisations such as BritishAmerican Business Inc, those economic links are stronger than ever. In 2004, US direct investment into the UK reached £174bn ($303bn) while the corresponding figure for the UK is £144bn ($252bn). Approximately one million Americans are employed by British companies in the US and a similar number of British people are employed by American companies here in the UK. American companies have added 60,000 new jobs in the UK in the last three years alone. No less than £21bn ($36bn) of US goods were exported to the UK and British goods worth £26bn ($46bn) came into the US.

The even better news is that the UK is a growing market and has enjoyed over 53 quarters of consecutive growth in GDP. A large part of that growth is due to its strength in the fields of financial services, aviation, biotechnology, telecommunications and a host of other cutting-edge sectors. When I give this response, the usual follow-up is usually quick: “Where do I begin?” Again, the answer is simple. The US Commercial Service is one way to find help. It can provide market research, trade leads, export counselling and other cost-effective services to US companies seeking international partners and customers. The UK government also has a range of services for companies that are looking to invest here in the UK (see page 161) and a number of American cities and states can provide support
(see page 155).

Finally, organisations such as BritishAmerican Business Inc keep the links alive and provide companies with opportunities to meet others like themselves and guides like this one to find the help they need. There is no substitute for experience.
We all have a part to play in maintaining and developing the very special relationship between the UK and the US. We look forward to doing our part and wish you success as you pursue your new business ventures.