Business Dynamics: The United Kingdom

June 2019

A sound regulatory environment, well developed infrastructure, flexible labour market and extremely low levels of corruption make the United Kingdom (UK) an attractive destination for business activities and place it amongst the easiest places to do business globally. However, skill shortages remain a major drag. Besides, Brexit-linked uncertainty is a worry for businesses, as most of them continue to keep key business decisions on hold, awaiting the outcome of the ongoing Brexit negotiations.

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The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Sustainability: Insights on key sectors directly related to the environmental sustainability of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and sustainability trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.



Chart 1 SWOT Analysis: The United Kingdom


Business environment rankings some of the best globally
Chart 2 Overview of the Business Environment in the United Kingdom


Regulatory landscape worsening
Chart 3 Operational Risks in the United Kingdom


Interest rates raised from historic lows
Chart 4 Policy Spotlight on Access to Finance: the United Kingdom Chart 5 Finance in the United Kingdom


Major rail project facing delays
Chart 6 Policy Spotlight on Transport and Infrastructure: the United Kingdom Chart 7 Infrastructural Environment in the United Kingdom


Highly developed technology sector
Chart 8 ICT Environment and Innovation in the United Kingdom


Highly educated populace
Chart 9 Education and Skills in the United Kingdom


High employment rate
Chart 10 An Overview of the Labour Market in the United Kingdom


Chart 11 Impact of Global Scenarios on the United Kingdom

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