podim 2016 | uk experiences with supporting different types of enterprises
TRANSCRIPT
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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?
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
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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
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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:
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