There are more millennials in London than any other place in the United Kingdom, although this might not be surprising, considering the amount of people who flock to the city every year for work.
Due to the abundant opportunities in the city, London is particularly appealing for those who are looking to begin a new career. More often now though, the city is desirable as the perfect place for people to set up a start-up company.
Startups.co.uk has stated that last year alone, start-ups in London were responsible for raising over £1.3 billion in the city. This not only saw money pouring into the Big Smoke, but it also created as many as 20,000 new jobs.
Although many industries have been shaken by Brexit, start-ups are one area – particularly in London – that seem to be remaining strong. The Telegraph wrote an article mentioning that the German Free Democratic Party paid for signs stating ‘Dear Start-Ups, Keep Calm and Move to Berlin’, in a dark humourous move. However, in the weeks following Brexit, the “number of businesses registered by Europeans in the UK actually went up, not down”.
The reality is that 40 per cent of Europe’s unicorns – tech start-ups worth $1 billion or more – are in the UK, most of which are based in London. Even when compared to America, London and the wider United Kingdom are the most entrepreneurial of entrepreneurial places.
London is capable
Although major technology companies like Microsoft are saying that Brexit has made the UK a less desirable option in which to invest, tech and digital start-ups should be made a massive priority for creating future jobs.
Let’s not forget that London’s Tech City was borne out of a recession that hit the rest of the UK extremely hard. Tech start-ups moved into the east end of London by Shoreditch as this district had more affordable rents for new businesses. Many of the companies that closed in the area had been architecture firms that could no longer afford to be on the market, which meant a lot of property was open for rent.
These tech start-ups that moved in started something of a business revolution and by the end of 2011 there were 200 different companies in Tech City. It wasn’t too long before it saw big players like Facebook and Google moving into the area, which saw it twinned with Silicon Valley in California, thereby putting London tech start-ups on the map.
London is capable of producing successful industry from tech start-ups if history is any occasion. Mayor of London, announced a #LondonIsOpen campaign, which promote the city as one of growth, innovation and creativity that will be unaffected by Brexit.
Post-Brexit Britain ought to be an attractive option to entrepreneurs because it will be much easier to set up a company in London than any other major city in Europe.
This is because, outside of the EU, London isn’t going to be as heavily regulated and won’t be under as many constraints and rules to open in the first place. According to the World Bank, the UK is the 17th easiest country in the world to start a business, as such, it should also be even easier after Brexit and potentially much cheaper too. This is something that will absolutely make London an appealing investment opportunity, as the easier that businesses are to open, so too will it be to expand companies.
Soon, the UK will have the lowest corporate tax rate of any major economy in the world at just 15 per cent.
Comparably, the rates of corporate tax in Germany and France are 29 per cent and 33 per cent respectively. However, for entrepreneurs i.e. those who open their own start-up businesses in the UK, capital gains tax is only ten per cent, which means that there is also more profit to be reaped from the money coming into the company.
The primary aim from opening your own business is to make money, which is why tech start-ups in London will become a hugely viable option for many as we move closer to post-Brexit Britain.
Migration and sterling
As Britain is no longer going to be restricted by European standards of foreign employability, this means that the pool of talented workers has room to grow. For example, it will be easier to employ people from America, India and China, which means that UK start-ups don’t just have to look at CVs from people in Britain.
Instead, they can push their search wider and employee the best people from anywhere to help their business to grow and improve.
There will be drawbacks to living in post-Brexit Britain of course, but London tech start-ups and the people behind them are making plans and unifying with the aim of making the UK a place that has a strong and desirable economy.