In HSBC Private Bank’s latest report, An Entrepreneurial Outlook on the UK, the UK also ranks as an attractive place for global entrepreneurs to move their financial assets to and live, despite rising competition from other international wealth centres and ongoing discussions surrounding taxation.

The UK’s appeal to wealthy global business owners is driven by its strong credentials in AI and innovation. Access to advanced technology is the leading reason why global entrepreneurs say they are interested in conducting business in the UK over the coming year, cited by 39% of respondents globally.

Similarly, entrepreneurs in the UK cite AI and technology as a driver behind why they are so positive about their business outlook. In fact, UK entrepreneurs are among the most optimistic in the world, with 98% saying they are positive about their business prospects and 96% positive about the trajectory of their personal wealth.

When asked what was driving their positive business outlook, nearly three-quarters (73%) cited technology or AI as a leading reason. Entrepreneurs globally also cited the UK’s strong financial and professional services, world class schools and universities, and quality of life as draws for the UK.

The report also shows some of the challenges the UK faces, including competition from rival international wealth centres, as well as the globally mobile nature of entrepreneurs.

One quarter (26%) of entrepreneurs in the UK are considering a personal move or adding a new residence abroad in the next 12 months (compared with a global average of 57%). While business and investment opportunities are their main motivation, tax is also a consideration for one in 10 (9%). This is less than the global average of 18%, but demonstrates that entrepreneurs have many global options and opportunities.

Charles Boulton, UK CEO of HSBC Private Bank, commented: “The UK’s strengths as a location for entrepreneurs to live, work and invest remain extremely compelling. Its AI and tech credentials are increasingly appealing to both UK and international business owners, and it continues to benefit from world class professional services, a great quality of life and top schools and universities. But the UK needs to continue to adapt to thrive. Entrepreneurs are willing to explore the world for new opportunities, and with wealth rising across Asia and the Middle East, competition for the world’s best and brightest is getting stronger.”

The bank’s report also highlights that:

• The top three reasons for UK entrepreneurs feeling positive about their wealth outlook are the opportunities available to them (65%), performance from their investments (62%), and the outlook for the local economy (43%)
• UK entrepreneurs’ greatest worries for their personal wealth are volatility in financial markets (40%), balancing enjoying and growing wealth (37%), and inflation (33%)
• The leading reasons why international entrepreneurs want to add a UK home are to gain access to new investment opportunities (60%), expand into new markets (52%), better quality of life (48%), and education (46%)
• Expanding their business to new markets and gaining access to new investment opportunities are the leading reasons why entrepreneurs in the UK are considering moving overseas in the next 12 months (both 18% of those surveyed)

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