The UK has become somewhat less attractive for family businesses to settle in the country because of the Brexit, but is still in a relatively good position compared to other countries. This is demonstrated by German research into family businesses and which country has the best setting climate for them. The United Kingdom fell in the ranking for most attractive countries for family businesses from first to second place, allowing the United States to take the lead.
‘Brexit has been a major disadvantage for the United Kingdom’, says the research institute Zentrum für Europäische Wirtschaftsforschung (ZEW).
“Future British governments have a long way to go if they want to regain the economic dynamism promised by Brexit supporters,” the researchers write.
The list has been compiled biannual since 2006. The researchers, based on their review of 21 countries on the tax burden, labour costs, productivity and human capital, regulation, financing, infrastructure, and institutions, and utilities. The fall in the United Kingdom is due to the ‘increased financial and political uncertainties of the opaque Brexit process’, which has a particular impact on financing and infrastructure. The United States, on the other hand, is very successful in terms of regulation, financing and energy, as well as in terms of labour costs and productivity.