UK Best for Startups

Small Business News - 21st November 2007

Despite concerns over red tape, the UK is the best place for startups, according to research from the Financial Times.

The study, which involved the UK, France, Germany, Italy, Spain and the United States, found that the British are reservedly enthusiatic about starting up business in the UK whereas there is pessimisim amongst the Italians and Americans are strongly optimistic.

Italians cite cynicism with the quailty of government support, corruption and infrastructure problems as barriers to starting up in business.

The French position on starting up business was more mediocre suggesting that the new premiere, Nicolas Sarkozy's proposed reforms were doing little to change the attitudes of the French that business startups are tough for the budding Galic entrepreneur.

After 10 years of steady growth, the Spanish are very comfortable with their startup prospects with even World Bank reports staing Spain is a good place to do business.

And yet the British are reported to think about business less with around a third to a half of respondants refusing to express opinions on business startups one way or another.

Around 40% of the UK respondents to the Financial Times survey saw proliferating red tape as a problem, although including those respondents that had no opinion inflates the figure to 86%, which is claimed to be higher overall than the other countries involved in the study.

So although the Brits may grumble about red tape, the climate for starting up a new small business is similar to that in the US with availability of finances and the prevailing attitude that risk-taking entrepreneurs should keep a substantial share of the wealth they generate.

Overall, Europeans are increasingly upbeat about starting business.

Americans, despite recent subprime financial woes, remain postive, partly due to the successes of internet startups such as facebook which have been extremely successful.