Startups in the UK
Is it popular and how do you get funds for your startup?
In modern society people are used to striving for their ideals, which cannot be said about our ancestors, for whom stability was a sign of a good life. In the key of such events, if you take a survey among the inhabitants of Great Britain, 70% of people, whose age ranges from 25 to 40 years old, will answer you that they are interested in creating their own business.
The UK is one of those countries where the population has an incredible interest in entrepreneurship. In terms of numbers, in 2013 there were more than 500,000 startups created in the U.K., and in 2015 there were more than 600,000. These are very good circumstances for investors, as investing capital in such a business is likely to be very profitable. According to statistics, about £3.6 billion was invested in startups in 2015. And if we take this figure for a certain record, it would be safe to say that such a rate of development is a record for the state, and it really is, if we talk about the world record, it is still early, but the chances are. Such chances have been boosted by the fact that the UK has moved closer to fifth place among business-friendly countries, and has taken a legitimate 6th place.
On the part of the government, of course, is support, there are already attempts to partially exempt the company from state fees, as well as reducing taxation from 20% to 18% or even 10%. It would seem that some 2%, but in fact it is very much. So we can say that startups in the UK is a very useful practice that benefits both the state and the population of the country, including non-residents.
What kind of visa is needed for a startup and how can you secure sponsorship?
Startups in the U.K. receive very solid capital from foreign entrepreneurs. In 2015, the contribution from foreigners was equal to almost 20% of the total number of contributions, and this shows both the popularity of UK startups and people’s trust in them. The state first of all pays attention to your age (preferably you should be under 32), your capital (of course the more – the better), as well as the absence of criminal record, and since business in the UK, it goes without saying, knowledge of English.
To be an entrepreneur or investor, you need to get a Tier 1 visa. As an investor, a person can get this visa if the account has £200,000, or that such an amount has been invested in a British business.
In order to apply for such a visa one will have to pay £800. This amount a person can receive from relatives, business partners, or received from a joint account, but on the condition that the other owners of this account will not apply for a visa.
In order to become an entrepreneur, you need less capital, about 50K pounds sterling. This amount must be kept in a person’s account, or invested in the business.
But also if you do not have that kind of money, but the desire to create a business and get a visa for this makes you incredibly strong, then there is a solution. First of all, you must understand all the risks and think carefully about whether the business will be successful. If your answer is positive, i.e. the business will definitely be profitable, then you will have a lot of chances to get support from private or government organizations.
To become a participant in this, there are three ways to do it:
- Become a participant in government programs that support business
- Expect support from venture capital organizations (commercial scientific and technical organizations which specialize in the creation, development, and introduction of new products and their application through the use of risk capital). Some of these organizations may invest in your business for amounts you have not yet seen, while others may help strengthen your business to a better position
- Apply to gas pedal programs. A business gas pedal is an institution that helps you with your business in a way that provides academic, financial, or any other assistance in exchange for an equity stake in your company
The first two variants on the list above will work for people who are in the U.K. If you are a non-resident, the third option is your way out. By enrolling in a gas pedal program, the institution will give you part of the amount, the rest you will need to collect on your own, but you can borrow there and pay it back later. The sum, on the other hand, remains at £50,000.
What kind of startup can you do?
Food: Undoubtedly, this is a popular sector to get into. If in Ukraine there is the fact that borscht, varenyky, saltison are the most popular folk cuisine assets, in Japan – sushi, in Korea – ramen, in Russia – pelmeni. Unfortunately, in Great Britain the issue of national cuisine is very small in terms of the number of famous dishes (it is tikka-masala or French fries). Vietnamese cuisine here is still a delicacy, as well as the British would not mind a burger with natural quality, not as is done in fast food restaurants. The population is also attracted by foods with prefixes such as “gluten-free,” “sugar-free,” “lactose-free,” “no animal products.
Technologies: Definitely another sector on which to get rich. Every day there are more and more kinds of smartphones that can fold in two, that have an NFC chip, and more. Also now there are a huge number of “smart” appliances, such as toothbrushes, refrigerators, vacuum cleaners, etc. Therefore, technology is one of the quite popular business ideas.
Cosmetics: In today’s world even men use cosmetics, and this is normal, because everyone has to look after themselves (although historically it happened that originally even decorative cosmetics were invented by men for personal use). So by starting your own business in terms of cosmetics, you will definitely be successful. In the UK, people are very attentive to the products they buy and soon use on themselves, so it is worth immediately understanding that the quality of cosmetics is important in the first place because of consumers and satisfying their desires, and in the second place because of feedback on the account of your business. “Green”, “Eco”, “Organic” – these are the three pillars on which you can safely build your cosmetics business. 76% of British adults say that they pay attention to the “ecological” characteristics of products. So it is worth selling cosmetics with these characteristics. It is also worth considering how these cosmetics are tested, as most manufacturers test the quality of products on animals. Now on the expanses of the Internet the topic of treatment of animals is gaining a lot of popularity, due to which even more people began to think about how to choose cosmetics in the future, so that fewer animals will suffer. And for this purpose it is necessary to make the testing of different hygiene products more popular, by In vivo (research on volunteers) or In vitro (research on bacterial colonies) method.