Start-ups planning European hubs
More than one in five UK start-ups is planning on establishing a base in Europe in the wake of last year’s vote to leave the European Union and some have already decided to move their headquarters out of the UK.
According to a recent survey from Silicon Valley Bank, more than 60 per cent of UK start-ups have ruled out the possibility of opening a European office in response to the Brexit vote but 21 per cent are considering it.
The survey also shows that one per cent has committed to moving their headquarters to Europe and 16 per cent are thinking of relocating their base to either Europe or elsewhere.
The main reason given for this is that non-British employees are concerned that their long-term opportunities to work in the UK could be at risk post-Brexit, while others cited fears over the ability to attract venture capital and a belief that the cost of running a business would rise.
Meanwhile, backing up this data, a separate survey on professional networking site LinkedIn found that there had been a sharp dip in the number of university-educated professionals seeking jobs in the UK immediately before and directly after the Brexit vote.
There has also been a dip in optimism amongst entrepreneurs, according to the Silicon Valley Bank survey, with a 10 per cent reduction year-on-year in the number of businesses who said that their outlook for business conditions was better now than this time last year.
However, despite all of this, 89 per cent of start-ups are planning on hiring more staff this year, which is greater than the 79 per cent of US start-ups that say they intend to expand.