The UK and USA are two of the largest economies in the world, and share a lot of similarities when it comes to business. Both nations are home to some of the most influential companies in their respective fields, so if you’re looking to start a small business it makes sense to do your research.
While there are many similarities between starting a small business in the UK and starting one in America, there are also some key differences that smart entrepreneurs will want to be aware of before they get started. In this post we’ll discuss three major differences between small businesses in both countries: marketing, administration & funding
Small Business Marketing
The first major difference between small business marketing in the US and the UK is that in the UK, small businesses tend to be more focused on local advertising. In America, there are many large companies with a national reach that can afford to advertise on a national scale. This means that most advertisements you see will be for these larger companies. In contrast, if you’re living in England or Wales (and especially Scotland), there will likely be less competition from other businesses—and therefore fewer advertisements from competing companies trying to get your attention.
Additionally, American businesses generally use more aggressive marketing techniques than those used by British firms: things like direct mail campaigns or telemarketing calls often go unused by British marketers due to cultural differences between how people interact with strangers over distance compared with their American counterparts. The result of this? A smaller pool of potential customers who may not respond well if they receive an unsolicited message from an unknown source!
The third major difference between marketing in America versus the UK is that British companies tend to be more focused on their local community.
Business Administration
Business administration is a lot more complex and expensive in the UK, particularly when it comes to tax. While you can choose to file your taxes quarterly, there are many business owners who prefer the convenience of filing their taxes annually. This means that they’re spending more money on accounting fees than those who file quarterly (and saving on accountants’ time). The complexity and expense of business administration also extends beyond taxes; for instance, there are different rules around how long it takes to register a company and get started with trading activities in the UK compared to America.
As a result, there is more time and effort involved in setting up a business. In fact, the UK has the longest start-up times of all major economies* It takes an average of six months for British business owners to set up their company, compared with three months in America * In comparison, China takes four months and France takes just over two months * The cost of setting up a new business in the US is $3,400 per year on average, while the UK comes second at $3,100.
* The cost of registering a company in the UK is $5,600 on average, compared with $1,000 in America. * The average time it takes to start trading after registering a company is two years and eight months in the UK compared with one year and ten months in America* The UK is one of the most complex countries to deal with, in terms of administration. * The cost of business administration in the UK is more expensive than any other country. * The time it takes to set up a company and get trading in the UK is longer than any other major economy.
Start Up Funding
Start up funding is different in the UK. The UK government offers a range of funding options for entrepreneurs, including grants, loans and equity investment. Most small businesses in the UK are self-funded, but some take out loans from banks or apply for government grants or loans.
The UK government has set up a range of schemes to support small businesses, including grants for research and development, loans for start-ups and equity investment through the Enterprise Investment Scheme (EIS).
There are also a number of private-sector investment schemes and private equity funds. In addition, the UK’s Enterprise Investment Scheme (EIS) provides tax incentives to investors who invest in early-stage companies. This can be a significant source of finance for start-ups, but it is not available to companies that have been trading for more than two years.
Marketing, Administration and funding are three major differences to consider if starting a small business in the UK.
If you’re looking to start a business in the UK, it’s important to understand there are key differences that could affect your success. For example, the market for small businesses is more localized than it is in the US and this means that marketing strategies need to be customized for each region of the country. In addition, because there are so many regulations on how companies must operate in this country, administration costs are higher than they are in America. Finally, funding opportunities for small businesses are much more limited than they are here; most government grants require recipients to be either charitable organizations or have very specific goals such as supporting renewable energy projects or building affordable housing units
In general, these three areas are where most differences between UK small businesses and their American counterparts lie. Marketing is more localized; administration costs are higher due to government regulations on things like employee benefits packages; funding opportunities come mostly from large corporations that don’t want to invest in individual entrepreneurs or small businesses;
There are many similarities and differences between starting small businesses in the US and UK. Marketing, administration and funding are three major differences to consider if starting a small business in the UK.
