PODIM 2016 | UK Experiences with Supporting Different Types of Enterprises

1 Presentation title - edit in the Master slide

Business is GREAT

Come to the UK

You’re Welcome

Karolina Łopacka – UK Trade & Investment

UK Experiences with Supporting Different Types of Enterprises

Maribor, 12th May 2016

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Agenda for today:

▪ Why is the UK an attractive market?

▪ How does the UK support start-ups?

▪ How does UK Trade & Investment support

entrepreneurs?


Why is the UK an attractive market?

Vast market opportunity

.

World-class industries

6th

Sophisticated client base

64+ million consumers

5 + million enterprises

5th largest

economy in

the world

1st place for

foreign direct

investment in

Europe

Largest IT

industry in

Europe

Advanced

transportation

systems (air,

rail, road, sea)

UK is the 5th largest economy and the 2nd most innovative country in the world

Financial and

trade centre

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The United Kingdom ranks 6th globally when it comes to ease of doing business

Ease of doing business1

CountryEase of Doing Business Rank

Singapore 1

New Zealand 2

Denmark 3

South Korea 4

Hong Kong 5

UK 6

Germany 15

Ireland 17

Slovenia 29

Source: World Bank, Doing Business 2016

24 hours to open the

business online

1 GBP required share

capital

Trust towards

entrepreneurs

1. Index consists of such components as: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency

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UK Start-up killer facts

£1.3 bn financing provided to VC-backed business in the UK in Q1 2016. In 2015 UK tech sector raised over £3.6 bn of VC financing – a

70% increase from 2014

Business angels are UK’s main source for early-stage investment and invest mostly in digital, internet and innovative technologies

businesses

More than 300 incubators across all

industries, with an average success rate of

over 95%

In 2016 there are approximately 30 accelerator

programmes in the UK, including Seedcamp,

Tech Stars, Ignite 100, Entrepreneurial Spark,

Healthbox

UK-based start-ups receive considerable support from government bodies and can benefit from both UK-wide and regional

incentives and funding

Strongest VC environment outside

of United States

Vibrant Business Angel

Community

Fast-growing start-up clusters,

incubators, co-working spaces

Well-developed accelerator

programmes

Support of the

government

Source: KPMG 2016, London&Partners 2016

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Even though there are plenty opportunities, our experience shows that entrepreneurs face certain challenges

The UK government and other UK institutions and organizations help to

overcome these challenges

Lack of information about the

market and competition

Difficulty establishing right

connections

Finding a right location / high

renting fees

Lack of the access to technical

facilities and expertise

Challenges registering an entity

and opening a bank account

Example challenges


How does the UK support start-ups?

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Equipment

▪ Catapult Centres – provide access

to equipment and technologies

The government helps start-ups in numerous ways

Funding and Equipment

Government support levers

Tax and Research

Source: UKTI

Funding

▪ Help accessing non-bank lending and

private equity – British Business

Bank, Seed Enterprise Investment

Scheme, VCTrust Scheme

Tax

▪ Small Business Rate Relief

▪ Entrepreneurs Relief

Research

▪ Smart Grant – up to 100,000 pounds

to carry Research & Development

▪ Small Business Research Initiative

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The government provides additional support by creating preferential tax conditions related to R&D and patents

R&D tax

credits

Large Corporations

R&D Tax Credits

SME’s R&D

Tax Credits

All companies with qualifying expenditure on

R&D are entitled to a deduction when calculating

their taxable profits with no upper limit.

R&D tax credits Patent Box

▪ The Patent Box encourages companies to locate

the high-value jobs and activity associated

with the development, creation and

exploitation of patents in the UK.

10% rate to be

phased in by 2017

The UK’s corporation tax rate has been

reduced to 20% as of April 2015, and is set

to be further reduced to 17% by 2020.

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• Over 300

business

incubators provide new

businesses with

office space and

infrastructure, as

well as connections

to sources of

funding

Almost every region in the UK offers various incentives to companies

Catapult Centres

• 11 Catapult

Centres allow

businesses to

access equipment

and expertise

• They bridge the gap

between research

and business, and

help commercialize

the outputs

Enterprise Zones

• 24 Enterprise

Zones offer a

combination of

reduced taxes,

simpler planning

rules and a package

of financial

incentives

Local Enterprise Partnerships

• 39 Local

Enterprise

Partnerships between the

government and

businesses, which

work together to

drive business

growth and provide

the best local advice

possible

Business Incubators

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Incubation brings benefits

Office space

• High speed internet

connectivity

• Telephone networks

• Access to equipment

Infrastructure

Access to expertiseConnections to

sources of funding

• Most supported by

government or

regional grants

• Charges are

subsidised

• Often shared and

focused on specific areas

• Clustering effect and

knowledge sharing

• Cost sharing

• Experts available to

support and advise

• Peer-to-peer mentoring

and coaching

• Aids acceleration of

growth

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UKTI’s GEP programme offers innovative entrepreneurs acceleration for their business from a UK hub

WHAT?

UKTI’s programme which helps accelerate entrepreneurs to global success from the UK

WHO?

Entrepreneurs and early-stage technology companies willing to scale internationally from UK

Global Entrepreneur Programme

Offer

▪ Harnessing the insight and networks of internationally successful entrepreneurs

▪ Leveraging these networks to help accelerate businesses and realise the potential of their ideas

▪ Enabling companies to access industry talent and expertise

▪ Raising investment capital – over US$200 mn raised so far


How does UK Trade & Investment support

entrepreneurs?

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We supported investors from various industries – from production, to sales or R&D activities

A manufacturer of industrial knives has acquired its distributor in the UK and is expanding its sale activities

A manufacturer of 3D printed prosthetic sockets,is engaged in clinical trials and R&D in the UK

A software company set up a UK tech and sales office, also interested to create an academic research centre

A manufacturer of research and diagnostic products expanded its UK branch and sales division

A glass manufacturer has acquired largest insulted glass units manufacturer in the UK and plans to create 300 jobs

A growing software development company, has opened a UK sales office

A software company is growing its UK presence and client base as a top quality outsourcing service provider

A health tech company, has set up in the UK, looking to provide innovative genetic testing solutions

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Our services to international investors in the UK are free of charge and

commercial-in-confidence.

UKTI offers flexible support packages for every aspect of your investment

Not sure which

country is best for

your business?

Already decided to

bring your business

opportunity to the UK?

Already established in

the UK, but looking to

expand your business?

▪ Market information

▪ Business insights

▪ Events / conferences

▪ Relationship building

▪ Accessing finance

▪ Recruiting skilled staff

▪ Choosing the right location

▪ Finding premises

▪ Opening a bank account

▪ Tax and legal advice

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▪ Information regarding tax and

company registration

▪ Market and competition overview

▪ Information regarding funding options

▪ Contacts to accounting and legal

services providers

Case studies: the scope of UKTI’s support depends on client's needs

▪ Booking engine for shipping services

Examples of UKTI’s support

Loyalty programs provider

Source: UKTI

▪ Booking engine for ordering shipping services

▪ One of the company founders runs the company in the UK as a managing director

▪ The company’s HQ moved to the UK

•Loyalty programmes for the companies, discount coupons and multilevel loyal cards

•Located in Level39 and about to hire their first employees in the UK

▪ Support in establishing the

relationship with Level39 –

a London incubator

▪ Information regarding networking

events and clusters

UKTI’s support UKTI’s support

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How to start cooperation?

Contact the local UKTI Inward Investment Team

Start a conversation about your plans and how we can assist you

Benefit from our support!

You can contact your local UKTI Investment representative at:

[email protected]

STEP 1 STEP 2 STEP 3

You can contact your local UKTI Investment representative at:

[email protected]

PODIM 2016 | UK Experiences with Supporting Different Types of Enterprises

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Transcript of PODIM 2016 | UK Experiences with Supporting Different Types of Enterprises