Steve Rigby, Co-CEO of Rigby Group.
U.K. Prime Minister Keir Starmer said the U.K. “will invest more deeply than ever in this transatlantic bond with our American friends in the years to come.” The U.S.-U.K. relationship spans centuries and has had many ups and downs, but could it be stronger, especially for businesses on both sides of the Atlantic?
A report from The Entrepreneurs Network, a British think tank for entrepreneurship policy, believes the answer is yes. (Full disclosure: I am a patron of TEN and contributed to the report.) “Towards a More Special Relationship” suggested the business bond between the U.K. and the U.S. is underdeveloped and shared policy recommendations for the U.K. government to close the gap and build stronger ties between the British and American economies.
I believe there are also steps business leaders can take to strengthen ties with America. In doing so, entrepreneurs can position themselves for success when looking to expand Stateside.
Common Pitfalls When Expanding To America
The U.S. is the U.K.’s top export market and accounted for 21.7% of export trade in 2023, but there remains a disconnect when British entrepreneurs look to expand their businesses into the U.S.
It might sound obvious, but the U.S. is not homogeneous. The vast regional differences—and how this affects business strategies—are often overlooked when British (and European) businesses try to expand in the States. Understanding competitive landscapes and industry concentrations is vital if you want to be on the front foot when entering a new market. For instance, starting in San Francisco might be the trendy thing to do, but is it truly the right decision?
Then there is also striking the balance of company culture overseas. Brits and Americans have different employment expectations, which can be difficult to navigate for those unfamiliar with the U.S. terrain.
What’s In It For The U.K.
Regardless of one’s political stance, I believe we must recognize the growth opportunities the U.S. has to offer. After President Donald Trump’s re-election, U.S. bank stocks soared. Also, America has a gross domestic product about 8.2 times the size of the U.K.’s, and its GDP per capita is approximately 1.7 times larger. Not only is it a more populated and wealthier country, but also many British businesses are interested in international trade. The Santander Trade Barometer said that more than a quarter (28%) of British businesses are considering international expansion in the next three years. I believe ignoring these facts would be detrimental to the U.K.’s economy and plans for growth, especially in the post-Brexit era and following the political collapse in France and Germany.
It has been a difficult few years for British businesses. I wrote previously about how it’s often difficult to keep larger businesses on British soil. A steady stream of news around decisions not to list or delist from the London Stock Exchange has led to questions about the future of Britain’s public markets, especially because many choose to list in the U.S. or are bought by American acquirers. This was the case with Darktrace, which delisted from the LSE and was sold to a U.S. private equity firm for $5.3 billion. From my perspective, a well-facilitated relationship between the U.K. and the U.S. would put founders at ease about how to access the U.S. market without having to list stateside.
Personally, I’ve grown weary of headlines questioning whether the U.K. is an “attractive place” to list. Of course it is. The sheer level of talent, the number of medium- and large-sized private businesses and our geographical position and track record of entrepreneurial success are but a few reasons why listing in the U.K. can be a wise business decision. Greater access to the extensive U.S. market could be another one.
How British Entrepreneurs Can Succeed Stateside
What could help British entrepreneurs thrive in the U.S.? The TEN report listed a number of actions the government could take, including working to establish a free trade agreement (or sector- and state-specific agreements) and developing a reciprocal “explorer visa.” Developments like these could help unlock doors for founders and CEOs, creating further innovation, investment and job opportunities. This could also help facilitate rapid technological advancement. We’re currently seeing the power of AI and have only begun to scratch the surface of quantum computing. A closer relationship between the U.K. and U.S. could increase the exchange of ideas and competitiveness so we could innovate faster to resolve global challenges.
When trying to expand to the States, I encourage U.K. business leaders to take a few important steps as well. Start by conducting sufficient research. The age-old adage of “failing to prepare is preparing to fail” rings true. Expansion requires an understanding of the new market, which is why entrepreneurs must do their due diligence and have clear proof points before they take this next step.
Ask yourself: Why have I chosen this particular state? Who are my competitors? Who are my customers? How will I reach them? Have there been any notable successes and failures in my industry in this region? Learning from the mistakes of others is a good way to keep from repeating them, as is having an existing network. This might not be possible for some, but having a group of informed connections will make expansion an easier process.
To build your network, I recommend attending U.S.-focused events and following and interacting with such entrepreneurs on LinkedIn. These are simple but effective methods for British businesspeople to develop relationships in the U.S. Be careful not to waste people’s time, and be prepared for rejection, but if budgets allow, visit the U.S. and try to set up meetings with investors or innovators so you can hear their experience firsthand. Failing that, an email or video call can often work wonders.
While I can hold up my hands and say the U.K. stands to gain much more from the U.S.—a larger economy, population (and consequent customer base), investment and an ingrained startup culture—the U.K. certainly has lots to offer. Our unique entrepreneurial ability and rate of innovation are a few reasons why both parties would benefit from a stronger bond. History is a great unifier, and we can use this to become closer and propel ourselves into the future.
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