Economies across the world are steadily climbing out of the global economic downturn, but the United Kingdom economy is one of those leading the way. There have been a succession of economic indicators in recent times, showing that real growth is taking place. Unemployment is falling, house prices are rising, consumer confidence is up, and record numbers of businesses are being formed. A recent study by the Office for National Statistics looked at the contribution that foreign investors and sources were making to the building of the UK economy. Here, Glowing Global review the study, and consider the implications for businesses across Britain.
“It’s been obvious for a while that our nation’s economy is growing again, and that’s great news for entrepreneurs and consumers”, said Ricco Katona, director of Glowing Global. “We’ve always been a culturally diverse society, and the ONS study shows how that is helping to build our economy. Any investment in the UK economy is welcome, and is another sign of the growing confidence behind the recovery.”
The Office for National Statistics create a range of studies that give a true reflection of the make up of our economy. The latest study found that there were 21,100 foreign owned businesses in the UK, compared to 1,920,300 UK owned businesses operating in the country. This equates to approximately 1% of all businesses being foreign owned. Nevertheless, this 1% contributed a huge 28% of UK value added. This official ‘value added’ figure looks at the income and turnover of a business, with the cost of goods and services that generated the turnover taken away.
The study is a clear indication that a significant proportion of the top performing businesses in the UK, with the highest turnovers, must be foreign owned. It shows the enormous contribution that foreign business leaders are making to the building of our nation’s economy. It further breaks the source of foreign ownership down on a continent by continent basis. The study shows that 49.8% of the foreign owners are from Europe, followed by 39.7% from North and South America.
“Foreign entrepreneurs are making a positive impact on our economy, and they’re investing here because they are confident in our future growth”, said Ricco Katona. “The study also shows the positive contribution that entrepreneurs can make to the economy as a whole. It’s inspiring for business people of all nationalities.”
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