Global entrepreneurs see the UK as one of the top destinations to conduct business, with only Singapore ranking higher in terms of appeal, a report from HSBC Private Bank has shown.

Its report, An Entrepreneurial Outlook on the UK, found that the UK also ranked as an attractive place for entrepreneurs around the world to move their financial assets to and live, despite widespread discussions about taxation and increased competition.

Wealthy business owners’ attraction to the UK is being driven by its strong credentials in artificial intelligence (AI) and innovation, according to HSBC Private Bank.

Access to advanced technology was the top reason why entrepreneurs were interested in conducting business in the UK in the coming year, cited by 39 per cent of respondents.

Furthermore, entrepreneurs in the UK also pointed to AI and technology as a driver for why they feel positive about their business outlook.

According to HSBC Private Bank, UK-based entrepreneurs were the most optimistic in the world, with 98 per cent saying they were positive about their business prospects and 96 per cent feeling positive about the trajectory of their personal wealth.

When asked about their positive business outlook, 73 per cent pointed to AI or technology as a primary driver.

The top three reasons given by UK-based entrepreneurs for their positivity about their wealth outlook were the opportunities available to them (65 per cent), investment performance (62 per cent), and the outlook for the local economy (43 per cent).

Global entrepreneurs were also attracted to the UK for its strong financial and professional services, world-class education system, and quality of life.

However, the report also highlighted some of the challenges the UK is facing, including competition from other international wealth centres and the globally mobile nature of entrepreneurs.

Over a quarter (26 per cent) of UK-based entrepreneurs were considering a personal move or adding a new residence abroad over the next 12 months, although this was below the global average of 57 per cent.

While business and investment opportunities were their main motivation, tax was also a consideration for 9 per cent, but this was also below the global average (18 per cent).

UK-based entrepreneurs’ greatest concerns for their personal wealth were market volatility (40 per cent), balancing enjoying and growing wealth (37 per cent), and inflation (33 per cent).

“The UK’s strengths as a location for entrepreneurs to live, work and invest remain extremely compelling,” commented HSBC Private Bank UK CEO, Charles Boulton.

“Its AI and tech credentials are increasingly appealing to both UK and international business owners, and it continues to benefit from world class professional services, a great quality of life and top schools and universities.

“But the UK needs to continue to adapt to thrive. Entrepreneurs are willing to explore the world for new opportunities, and with wealth rising across Asia and the Middle East, competition for the world’s best and brightest is getting stronger.”

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