America has always provided foreign investors a stable and welcoming market. Offering an entrepreneurial-friendly environment and a quality-of-life culture, it is the least complicated business economy to get access into. With its low taxes, transparent legal system, outstanding infrastructure and productive workforce, the United States offers not just an opportunity to thrive, but access to the world’s most lucrative consumer market. For UK businesses looking for a home run into a major market, investing in the US has many advantages.

Size matters

The US economy is still growing. With 345 million people and an astonishing $28 trillion GDP in 2023, America offers the largest consumer market on earth. Household spending is unmatched, accounting for nearly a third of global household consumption, and free trade agreements with 20 other countries provide enhanced access to hundreds of millions of additional consumers. 

Robust consumer market

One of the greatest appeals for foreign investors to operate in America is to be closer to their suppliers and customers in a dynamic market, as well as the free trade agreements allowing unparalleled access to diverse markets around the world. The United States accounts for 20-30% of the global consumer goods market with a per capita disposable income of $50,000. The UK is by far the leader in investment, especially in key market sectors from energy, security and healthcare, to financial, engineering and creative industries.

Education and technology

Of the top ten universities in the world, six are in America. A further 4,000 of its universities and colleges attract over half a million international students each year. Not surprisingly, US companies are leaders in technological advances and innovation, prompting the World Economic Forum to rank the US first for innovation, labour market efficiency, and sophistication of business operations. It also provides foreign investors a strong regime of intellectual property rights protection and enforcement.

Ease of doing business

As well as speaking the same language as UK investors, the US is a hospitable country, geared toward fostering new ventures. Hosting the most developed, liquid, and efficient financial markets in the world, the US offers a wide range of funding sources and is consistently ranked among the best internationally for supporting business. Since the Reagan administration, foreign investors have always received non-discriminatory treatment and compete on an even playing field with Americans.

The right people

Diverse, educated, skilled, innovative, and mobile, the US workforce is among the most productive in the world. Its output per hour is above the OECD member country average and is perfectly placed to meet the needs of a 21st-century economy. But perhaps the greatest endorsement for expanding into the States is that one million Americans already work for UK companies.

A roadmap to success

Although many UK businesses make a great success of opening for business in the States, some will fail because they do not have the correct internal alignment. Happily though, with the correct guidance, almost all of the obstacles and pitfalls can be safely navigated. Typical issues to get right might include: Leadership – setting up project management and assembling experts; Entry Plan – market research and dependencies; Legal – corporate structuring and contractual terms; Immigration – ensuring appropriate Visas; Insurance – mitigating the risks of US litigation; and so on. Basically, Americans love to buy from Americans, and if their companies just happen to have a British pedigree, then so much the better.

For further guidance or a bespoke proposal on how to expand your business into the US visit Blue Link Worldwide. 

Written by Dr. Frank Levene, Principal Partner at Blue Link Worldwide, Inc.