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The UK is a country with a strong economy and a wide range of business opportunities.
Here you can try your hand at many promising business areas that can provide solid returns. However, when researching the market, you need to consider many factors including the industry, demand, consumer behaviour and others. In this article, we’ll take a look at a few business sectors that have been around for years.
The E-commerce Sphere
This sphere was born many years ago thanks to the development of Internet technologies and the introduction of electronic payment systems. However, today it continues to grow at a rapid pace worldwide and in the UK in particular. While market giants such as Amazon and Asos continue to hold a leading position, there is still room for smaller players in the market.
A key advantage of online retailing is that it allows entrepreneurs to reach a wider audience of potential users and reduce additional costs, resulting in higher profitability. However, in recent times, e-commerce has been extremely competitive and you need to stand out from the crowd to achieve meaningful results. On top of that, managing the logistics and supply chain for an online retailer can be a real challenge, especially for smaller businesses.
Real Estate
Although the UK’s population is not growing very fast, the demand for real estate – especially in London and the south-east – is quite high. And that means there is a large property market with many developers and investors keen to put their money into a potentially lucrative business. However, with real estate prices too high in upmarket areas and a shortage of housing in some parts of the country, the industry faces a lot of problems that need to be addressed. In addition, before you get your hands on the real estate business, you need to study a lot of laws and regulations to know how real estate transactions, construction of properties and leasing of various premises are regulated.
Pharmaceuticals
With AstraZeneca and GlaxoSmithKline headquartered in Cambridge and the London suburbs, the UK is a country with a fairly developed pharmaceutical industry. Driven by innovation and scientific research, pharmaceuticals are a potentially lucrative industry for those who are not stingy about investing serious money in it. In addition, the pharmaceutical industry includes the manufacture, distribution and sale of medicines and various treatments, making it a very promising industry for many market participants. Beyond the profits generated by the introduction of effective treatments, pharmaceuticals improve the health and well-being of the population.
Technology
The technology industry is a fast-growing sector of the UK economy with companies such as Deliveroo, Revolut and TransferWise leading the way. Driven by innovation, it focuses on several important things such as software, hardware design and digital services. In recent years, the UK has seen a boom in start-ups where those focusing on software and fintech have dominated.
Because most of the UK population is tech-savvy, there is a significant presence of global giants such as Google, Microsoft and Amazon, with offices and research facilities located in London, Manchester and Cambridge. All of that is supported by a strong infrastructure of universities, research institutes and government agencies that provide financial and intellectual support for research and development.
Financial Services
In recent years, the financial services market in the UK has grown significantly. There are many fintech companies with HSBC, Barclays and Lloyds dominating the market. Although the industry is regulated by strict laws, it is still very promising for those who understand all the legal intricacies. Today, the UK is a leader in fintech innovation with new technologies and services that are changing the way people access and use finance.
Keep in mind that this industry is being heavily influenced by a variety of economic factors including changes in interest rates, inflation and global economic conditions. Financial services have also undergone major changes since the UK ceased to be part of the European Union as many companies – in a bid to continue to access the EU market – have been forced to move their operations out of the UK.
iGaming
By iGaming we mean a huge industry covering many activities including online casino gambling, betting on sports and eSports, online bingo, electronic lotteries and many others. The UK has a long history of gambling and sports betting, and iGaming is benefiting from this. In 2005, the Gambling Act was introduced to regulate online gambling and to ensure fair and transparent gaming.
Estimated at $9.9 billion in revenue, the British gambling market has become the largest in the world. There are many new UK casinos and well-established gambling sites competing for the attention of every player. Also, a good portion of the UK’s adult population is involved in gambling. So, there are great opportunities for iGaming businesses to operate in the UK market. However, due to the strict requirements and regulations imposed by the UK Gambling Commission, there are always risks of regulatory problems.
Bottom Line
Given the UK’s relatively high standard of living, as well as many other economic and social factors, it is an attractive destination for many large companies. The UK offers great opportunities for a variety of businesses. However, due to the high level of competition and very strict regulatory measures, not every company will be able to succeed here.
