By imitating the approach of the U.S in entrepreneurship, the U.K. can soon create for itself another version of the Silicon Valley that we find in the U.S. However, unlike in the U.S, the U.K has things to watch out for. They are as follows.
1Failure in the U.S is ok but not in the U.K: An entrepreneur having failed with his startup in the U.S can look at his failure as a stepping stone and a guide to success. In the U.K however, failure can lead you to face the difficulty of borrowing money before you start all over again. While failure in the U.S can be considered a useful experience to move on, the same may not be completely true in the U.K. Entrepreneurs will have to struggle as they finance their future projects as banks will be hesitant in lending to them.
2 Finance: While Americans have to pay a state tax that goes between seven to nine percent, in the U.K, it stands at over twenty percent. Also, national insurance and their heavy costs are not a major issue when you are in the U.S. However, in the U.K, an employee with earnings of more than $148 per week needs to pay 13 percent of their salary to the government every week. The net result when you start a business in the U.K is thus mach lower than in the U.S.
3 Venture Capital: With pensions accessed more easily in the U.S, investors are more willing to invest in startups while compare to the venture capital scene in the U.K. The market for venture capital in the U.S. is thus more responsive and well developed while compared with those in the U.K. Companies in the U.S thus do not have that big a problem in raising finance for their startups than In the U.K.
These are the things to look out for when it comes to creating startups in the U.K in spite of tremendous potential. However, this does not mean that the U.K is far from creating the next Silicon Valley.