Edinburgh, the capital of Scotland, undeniably exudes vibrancy, making it a delightful place to call home. Furthermore, it’s evolving into a thriving centre for business startups. Here, we share our top five compelling reasons to establish your new business in this dynamic city.
Before we start, note that if, for any reason, you can physically start a business in Edinburgh, you can still tap into its potential. You may do so by expanding your business’s reach to Edinburgh online. With today’s technologies and the advancement of transportation and delivery systems, reaching new clients worldwide is easy. One example is how Lottoland allows users worldwide to buy tickets for the Irish Lotto online without being physically present in all those countries.
5 reasons to start a new business in Edinburgh
1. Thriving arts hub
Edinburgh has nurtured its status as a global cultural centre for many years. The highlight of this artistic vibe is undoubtedly its summer festivals, primarily in August. Events like the Edinburgh International Festival and the Edinburgh Festival Fringe attract millions of people from all over the UK and beyond.
For businesses, this translates into a faster customer base expansion compared to cities with fewer visitors. Furthermore, Edinburgh’s strong support for the arts creates a conducive environment for businesses in this sector to prosper, especially private galleries and studios, which thrive here while struggling elsewhere in the country.
2. Advanced technologies
Edinburgh isn’t just a haven for the arts; it’s also a welcoming place for science and technology startups. Edinburgh University is particularly enthusiastic about backing innovators in these fields, providing support through four business and research centres: Edinburgh Research and Innovation, Edinburgh Technology Transfer Centre, the Scottish MicroElectronics Centre, and the Edinburgh Technopole.
The Technopole, situated in a naturally inspiring parkland just south of the city centre, caters to small and medium-sized businesses. It offers various services to aid small enterprises and access resources from the University of Edinburgh and the Pentlands Science Park Facility.
Additionally, Edinburgh is well-connected in terms of technology, boasting average broadband speeds of 30.3 Mbps in 2013, surpassing the “superfast” threshold of 24 Mbps.
3. Unmatched business buildings
Edinburgh is awakening to its potential as a prime business destination, leading to a swift surge in new office spaces across the city. The mix of office facilities, retail shops, and upscale apartment complexes has transformed the district into a lively and highly desirable part of the city.
With established giants like IBM and Skyscanner establishing themselves in the city, other thriving and dynamic businesses are also drawn to Edinburgh, pulling in skilled professionals along the way.
4. Massive database of potential job candidates
Edinburgh boasts three world-class universities: The University of Edinburgh, Edinburgh Napier, and Heriot-Watt. Just a quick six-minute train ride from Edinburgh Waverley, you’ll find Queen Margaret University near Musselburgh. These universities enjoy stellar reputations in specific fields and on a global scale. All four rank among the UK’s top 100 universities, with Edinburgh in the world’s top 50 and Heriot-Watt in the top 500.
This results in the city nurturing numerous high-achieving graduates annually, many of whom opt to remain in Edinburgh due to its abundant opportunities. If your business seeks well-qualified employees or even interns for work experience, these institutions are the ideal source for exceptional talent.
5. Great government support
Edinburgh’s local government goes the extra mile to support new businesses, offering various services designed to facilitate their development. Business Gateway, a publicly funded initiative working closely with Edinburgh’s local authority to boost Scotland’s economic prosperity, regularly hosts workshops tailored to support emerging enterprises. They take great pride in reporting that companies they have assisted have experienced an exceptional survival rate surpassing three years, far outstripping the national average.
Prince’s Trust’s Enterprise program partners with young individuals aged 18-30 who may be unemployed or working less than 16 hours each week and provides entrepreneurial coaching, making Edinburgh an attractive location for aspiring young entrepreneurs. New businesses can explore various loan options, including government-backed start-up loans and East of Edinburgh Investment Fund funds designed for local companies.
Emerging enterprises in Edinburgh can turn to angel investment for support. Archangels is an Edinburgh-based investment syndicate that allocates approximately PS10 million annually towards early-stage businesses.
FAQs
What are the common modes of international expansion?
Common modes of international expansion include exporting, licensing and franchising, joint ventures, wholly-owned subsidiaries, and mergers and acquisitions. The mode choice depends on the company’s resources, risk tolerance, and strategic objectives.
How can a business identify the right international markets to expand into?
Market research is crucial to identify the right international markets. The main factors to consider are market size, growth potential, regulatory environment, cultural fit, competitive landscape, and infrastructure.
What are the key challenges in international expansion?
Common challenges include navigating regulatory and legal complexities, cultural differences, foreign exchange risk, supply chain management, and establishing a local customer base. It’s also important to adapt to local customs and preferences.
How can a business manage foreign exchange risk during international expansion?
To manage foreign exchange risk, businesses can use strategies like hedging, diversifying currency exposure, and maintaining foreign currency accounts. Consultation with financial experts or banks is also recommended.
What are the legal and regulatory considerations for international expansion?
Businesses must consider local laws, taxes, import/export regulations, intellectual property protection, and industry-specific regulations. Consulting with legal experts and local advisors is essential.
How can a business ensure cultural sensitivity during international expansion?
To ensure cultural sensitivity, businesses should invest in employee cultural training, hire local staff who understand the culture, and adapt marketing and product offerings to local preferences.
How long does it typically take for a business to see returns on international expansion efforts?
The timeline for returns on international expansion efforts varies widely depending on factors such as market conditions, the chosen strategy, and the industry. It can take several years to see substantial returns.
How can a business measure the success of its international expansion efforts?
Success can be measured through key performance indicators (KPIs) such as revenue growth, market share, profitability, customer satisfaction, and brand recognition in the new markets.
