Starting a new business can be such an exciting time, as you envision the future success that you could have. You get the chance to be part of the world’s growing economy by venturing into an overlooked industry that makes you passionate, pushing you towards a fast-growing startup. The UK specifically has seen big growths for startups and particularly those that have been set up by expat founders, so why is that?
Recent research consistently shows that a significantly higher percentage of the UK’s top 100 fastest-growing companies are founded or co-founded by individuals born outside the UK, far exceeding the general immigrant population rate. This could be down to having a global mindset advantage that considers international markets or accessing a more diverse range of talent.
Comparing the UK’s service landscape to that of their home country gives them a better insight into what works and what doesn’t. This ability to apply solutions proven elsewhere to a new context gives them an advantage, as they get to position their startups for high-impact growth right from the start.
We’ll explore these ideas and more throughout this guide to find out why expat founders are drawing the UK’s fastest-growing startups. Continue reading to learn more.
How Big is the Expat Impact?
Expat founders have had a huge impact on the numbers when it comes to startups in the UK. Studies by organisations like The Entrepreneurs Network have shown that over half of the UK’s top 100 fastest-growing companies have at least one foreign-born founder. What makes this even more impressive is that expats only make up around 15% of the UK’s population, yet they are the leaders of creating high-growth startups that exceed the rates of those born in the country.
Some examples of businesses that have seen exponential growth in the UK within the past couple of decades include Wise, Monzo and Carwow, which are all valued over £1 billion and were co-founded by international talent. Expats often arrive in the UK with proven success models from abroad and possess the unique motivation required to build a company in a new country. This percentage of high-impact founders in the UK cements the nation’s reputation as one of the best places for expat startups
The Global Mindset Advantage
As mentioned earlier, expat founders have brought a new perspective into the UK market, as they are more willing to explore the global economy while booming on British soil. They often design their product or service with international markets in mind from day one. This is because their original home market may inform a feature set, or their global network provides an immediate expansion path. This leads to faster scalability and a stronger global trade footprint for the UK.
Expat founders are adept at identifying unmet needs or outdated processes in the UK market by using solutions that have succeeded in other countries. They leverage their cultural capital to introduce innovative concepts like FinTech that enrich the UK’s commercial ecosystem. This unique flexibility has allowed expat businesses to better handle the initial hurdles of starting up in a foreign country.
When discussing the specific area of FinTech, the impact of expat founders can transform the UK’s financial services landscape. Having navigated international banking systems, payments and currency exchange personally, expat entrepreneurs were quick to spot the inefficiencies and high costs of traditional cross-border transactions in the UK. This gives them better control over their business finances, ensuring they don’t overspend on anything unnecessary.
Global Networks and Talent
Having better access to international talent pools will improve problem solving, as your team can be made up of employees from varying backgrounds who have unique sets of skills and knowledge. Expat businesses tend to realise this and will ensure that they broaden their talent pool by considering those from different backgrounds and even those who live outside of the UK. Even though they won’t get the chance for in-person meetings that can be beneficial, this won’t matter too much as long as a schedule is made for online meetings so that everyone can attend without any timing issues.
UK schemes like the Innovator Founder Visa and the Global Talent Visa attract ambitious individuals by offering clear pathways for skilled founders. While the process can take a while, those who successfully navigate these routes usually show the scalability required to build a successful business. This can also be the way to gain British Citizenship in the future, as they gain permanent harbor in the country to work on the continued success of the business.
Expat founders often serve as a bridge to international investment networks. Their professional and personal ties back to their home countries or other markets allow them to tap into a more diversified base of potential investors, including venture capital funds, angel investors and family offices that may be looking to enter the UK market. This capability reduces reliance solely on the domestic UK funding scene, often leading to more robust marketing.
How the UK’s Policy Plays a Role
Expat entrepreneurs’ continued success usually relies on fostering a supportive environment, as having an open and supportive technical hub for their business can be the key to having a happier workforce who are willing to achieve the required results. The UK’s policies need to ensure that the immigration system is supportive of these high-growth companies, as they significantly help with the economy of the country.
Continued investment also needs to happen to support mentorship networks that will help expat founders localise their products and navigate the hurdles that the UK market throws at them. Building a successful startup in the UK is never easy, but expats constantly show that a well-thought-out strategy drives strong growth
A push toward streamlining regulatory processes and offering sector-specific advisory services for international founders would be beneficial, as this can reduce bureaucratic friction allowing these high-potential businesses to spend less time on administration. This ensures that there’s an initial investment in attracting global talent, which should translate into economic growth.
Final Thoughts
Growing a new startup business as an expat tends to offer a unique and powerful advantage because of the interplay between a broader mindset and a better selection of global talent. The very act of relocating and founding a business demands perseverance, adaptability and an inherent global perspective. This translates directly into business agility and innovation. This mindset allows founders to spot market gaps in the UK by leveraging successful models from around the world.
This can attract diverse international talent who are also seeking new opportunities, which enriches the company with varied skills and cultural fluency, creating products and services that are international-ready from day one. This powerful feedback loop is the main reason why expat-led ventures are not just participating in the UK economy, but are driving the success of its fastest-growing startups.
Having more expats applying for British Citizenship can only be a good thing for the UK economy, especially since international founders are leading over half of successful startups in the country. Restricting this from happening could ruin various industries in the UK, as it will limit how many new companies break into the scene.
