Doing business in the United Kingdom(UK)

Doing business in the United Kingdom(UK)

Due to the unstable state of the United Kingdom that comes from Brexit, which refers to the withdrawal of the United Kingdom from the European Union(EU), several issues have arisen. Nevertheless, some of these problems can be solved by starting up a storage and warehouse company. Amazon has lately altered the way in which people shop forever, and that means if the small businesses do not adjust accordingly, they may be kicked out of the market.

To deal with this problem, therefore, you can start up a warehouse and storage company since the United Kingdom is mostly dependent on its employees and small businesses. This would allow you to be paid a monthly fee for these businesses to use your storage and warehouse facilities (Mike, n.d.).

Population structure

The United Kingdom has a population of 67.89 million, according to the 2020 UN statistics. The United Kingdom has a growth rate of 61% every year. The United Kingdom has a great literacy level that is above 99% amongst the residents falling under the age of 15 years and above. Polish, Welsh, and English are the most used in the Kingdom. The fertility rate in the UK is 1.92 children to every woman. The infants born by foreign mothers in the UK are more than a quarter of the entire population, and they surpass the birth rate of the native women that are in the age of bearing children (Chapman, 2020).

Level of economic development

The level of financial freedom in the UK is 78.9. Its withdrawal from the European Union forced the policymakers to deal with the structural deficiencies, which include lackluster production growth. The well-established financial sector, the open trade system, and the working rule of law helped the UK to recover from the faced financial crisis.

Labor market

The United Kingdom has a liberal labor market that is in a position to be improved after the Brexit. The employment age is 16-64 years. Some people fall under the employment class, which is about 76.3%, unemployment class, which is about 4%, and the inactive economic people who are about 20% of the population, they include self-employed people (Heritage.org, 2019).

Health and education

The education system in the UK comprises of the primary school where all children aged 5 to 16 years have to receive education, secondary school, and further education consisting of college levels and university levels.

The United Kingdom also offers excellent healthcare services to all its inhabitants. The treatment and attention levels were good until the 2008 financial crisis that greatly affected the revenue levels. The expenditure on the health system was reduced, and that means some of the services offered had to be minimized or cut off.

Income level, inequality, and distribution

In the United Kingdom, the income is used to measure the material well-being of an individual. The income distribution is directly proportional to one’s income parade. It ranges from the poorest to the richest. The difference between the rich and the poor is what brings about inequality. When more income is concentrated on the wealthy individuals, then poverty clicks in and begins wasting away the UK (Jenkins, n.d.).

Government and trade organization

Starting a business in the UK is quite accessible since the regulatory environment is transparent and quite efficient. Setting up a business there would take you less than a week. The government has established a few laws that are easy to fulfill. For instance, there are minor price controls, which include regulated tariffs for many utilities as well as minimal regulations on the prescription of the prices. This is most likely to reform the subsidies after the Brexit (Heritage.org, 2019).

Trade alliances

After the Brexit, the European Union(EU) trade agreements no longer apply and therefore seeks to reproduce the impact of the EU agreements. This makes sure that there is a continuity of the trading agreements, such as being allies with third world countries (Department for International Trade, 2020).

Level of corruption

It is quite unfortunate that the UK is getting more corrupt with days. The probability of the corruption cases being investigated is also a bit minimal, and this encourages corruption in a way. The corruption mainly lies with the top management government officials, and it affects businesses in that the citizen is over-taxed so that they can get an extra coin for themselves (Hawley, 2019).

Banking practices, retail customs

Like any other business company, banks also have their regulation mostly when it comes to dealing with business organizations. Up to 2013, the UK regulator of banks was the FSA- Financial Services Authority. It ensured efficiency in banking services and made sure that customers were well catered for. On the other hand, the Financial Policy Committee (FPC) identifies, monitors, and take action in reducing or removing the systemic risk. These are the essential things your firm needs.

Issues and conflicts.

Since the United Kingdom withdrew from the European Nations, several issues and conflicts that you might need to know have arisen. The first challenge is that most firms are left uncertain about the deal to start a business will happen and what are the requirements for the deal to happen. The transition also means that the market access, product regulation, and the availability of the migrant labor will be affected.

References

Chapman, D. (2020, February 3). United Kingdom Population, 2020. Retrieved from World Population Review: http://worldpopulationreview.com/countries/united-kingdom-population/

Department for International Trade. (2020, February 4). UK trade agreements with non-EU countries. Retrieved from GOV.UK: https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries

Hawley, S. (2019, February 1). The UK is becoming more corrupt, and our democracy is at stake. Retrieved from Metro: https://metro.co.uk/2019/02/01/the-uk-is-becoming-more-corrupt-and-our-democracy-is-at-stake-8418561/

Heritage.org. (2019). 2019 Index of Economic Freedom. Retrieved from Heritage: https://www.heritage.org/index//country/unitedkingdom

Jenkins, S. P. (n.d.). The income distribution in the UK: a picture of advantages and disadvantages. Retrieved from LSE Research Online: http://eprints.lse.ac.uk/86408/1/Jenkins_Income%20distribution%20in%20the%20UK_author.pdf

Mike. (n.d.). 25 Best Business Ideas for the United Kingdom. Retrieved from Business Ideas Insights: https://www.businessideainsight.com/blog/best-business-ideas-united-kingdom/