In the 18th century the gold fields and vineyards lured British adventurers to the southern shores of Africa, promising wealth and wide-open spaces. Although the UK doesn’t offer much space, the current-day buccaneers are successful business owners who seek to expand their empires, grow their wealth and gain alternative citizenship in the process.
Not only will the UK diversify operations and potentially grow profits for an SA business expanding to the UK, it is ranked in the top 10 countries with the most favourable conditions for entrepreneurs to start up new businesses. It also climbed from tenth position in 2015 to fifth in 2016 on the renowned Forbes Best Countries for Business list.
‘Olderpreneurs’, a boon for the UK economy.
‘Olderpreneurs’ have been shown to be more successful than their younger counterparts. Businesses run by owners in their 50s drive up revenues three-and-a-half times faster than GDP growth — 11.5% compared to 3.1%. Older entrepreneurs also create jobs at a rate more than seven times faster than the UK economic average.
According to Scott Brown, MD of Sable International Accounting, ‘olderpreneurs’ are good news for the UK economy. If the employment rate of 50- to 64-year-olds matched that of 35- to 49-year-olds, the UK economy could be boosted by £88 billion. “This shows that these old dogs have a few new tricks to teach the younger generation,” he said.
Why the older generation does it better?
While those in their twenties may have the energy to stay up all night and work, older entrepreneurs bring other formidable advantages to the table.
A broad knowledge of business built up from years in the workforce, as well as potential management experience and large professional networks are just some of the reasons why so many olderpreneurs are successful.
People who start a business later in life are also more likely to do something they are passionate about. When experience and passion are involved it’s easy to see why the seniors are currently doing so well.
The UK is an excellent location for access to international markets. As an international business hub, London is filled with investment and entrepreneurial opportunities to grow and expand in the UK and beyond.
Brown outlined the tax advantages for opening a branch or relocating a business to the UK: “Compared to other developed countries, Corporate Tax is only 19%, compared to Germany’s 33%, France (34%), Australia (27%) and the USA (35%).”
“Lower taxes and a generally business-friendly legislative framework are big wins for anyone thinking about setting up a business in a new market,” said Brown.
The UK workforce is highly-skilled, which makes finding the right candidate easier.
Breaking into the UK presents opportunities to develop relationships with international suppliers and partners, diversify earnings into Pounds as well as Rands, plus help you hedge against volatile currency movements.
Brown pointed out that the UK has plenty of red tape and legislative requirements for entrepreneurs wishing to set up shop there.
“There are a couple of options from the Tier 1 Investor Visa which requires an investment of 2 million GBP or the Tier 1 Entrepreneur Visa requiring between 50 000 and 200 000 GBP depending on the investment route.
Brown advised that the £50 000 option has some additional requirements and he also drew attention to UK visa requirements, work permits and investor visas.