A large proportion of British companies will need to establish offices outside of the UK after Brexit, a new report has said.
New findings from Silicon Valley Bank estimates that a quarter of UK firms will need to make the move, up from a fifth last year, showing an apparent desire to move away from the UK at a greater speed.
The report notes that 14 per cent of entrepreneurs are weighing up the option of moving their headquarters to Europe, which is also up from 11 per cent a year before.
At the same time, founders have an improved business confidence, with almost half believing 2018 will be better than the year before. Forty-two per cent think things will stay the same. The percentage of people believing things will worsen has dropped from 16 per cent in 2017, to nine per cent today.
It all boils down to an interesting possibility – Brexit could in fact force businesses to be more ambitious.
"Reading between the lines and from what we've heard anecdotally from startups they would be looking to expand further afield anyway," said Erin Platts, managing director of commercial banking at Silicon Valley Bank in the UK, noting that it's "rare to see a UK-only company".
"Now it's more of a priority and they're doing it quicker than expected. Forcing them to do it more quickly is not necessarily a bad thing, it’s expedited the process," she said.
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