Crossing the Pond: U.S. vs. the U.K.

Separated by a common language and business cultures. Entrepreneur Mark Wilkins explains the differences between doing business here and his native U.K.

Mark Wilkins came to this country from the U.K. 13 years ago in search of  new business opportunities. In that time he’s had plenty of opportunity to observe the differences between entrepreneurship in the two countries. “It’s actually easier doing business here than in the U.K., because it’s the biggest market in the world,” he says. “So, to get a viable business going, you don’t need as big a market share as you do elsewhere.”

“It’s actually easier doing business here than in the U.K., because it’s the biggest market in the world, you don’t need as big a market share as you do elsewhere.”

Here’s his take on areas with the most pronounced differences—and those where things are pretty much the same.

Law

“Business law is much more prevalent, more part of the process of doing business here,” he says. The result: For Wilkins, it meant not only finding the best lawyer he could afford, but making that his first step.

Networking

According to Wilkins, networking is a fact of life in the U.S., and people are more open to making introductions. That was a particular asset initially, when his lawyer, accountant, and banker all successively helped get his name around. “People were happy to help,” he says.

“Networking is a fact of life in the U.S.”

In addition, Wilkins found more of an entrepreneurial spirit, what he calls “a mentality that ‘I can be the next Bill Gates.’” And that, in turn, motivates other company owners to be helpful and willing to share their insights. Wilkins also observed more organizations able to help. For example, from 2002 to 2005, he belonged to Vistage, a networking group for CEOs of small businesses. A group of 12 company heads met every month to discuss issues they were facing and hear talks from guest speakers. Says Wilkins: “One of those speakers was a merchant banker who discussed different forms of financing—information I’d never hear about before,” he says.

“There’s more of an entrepreneurial spirit, a mentality that ‘I can be the next Bill Gates.’”

Financing

“It’s easier to raise money in the U.S. than it is in Europe, by far,” says Wilkins. For one thing, there are more varieties of financing to draw on. He also points to the matter of banking competition. “In the U.K., there are five or so banks. In this country, there are many more,” he says. “If you’re borrowing money from a bank, nothing can stop you from going to the bank around the corner and saying, ‘Hey, I’ve got a deal. Can you better it?’”

“It’s easier to raise money in the U.S. than it is in Europe, by far.”

Selling

According to Wilkins, selling is one area where there are few differences. “In the U.K., Europe, and the U.S., you have to get to the right people and convince them you’re the right company to do business with,” he says. “Everyone faces the same challenges—pricing issues, customer issues, people issues, product availability issues.”

He does, however, see differences in selling to Latin America, especially when it comes to rules and regulations. For example, according to Wilkins, Brazil demands significant import tariffs. And that means you need to learn cost-effective ways to bring products into the country. There also are currency problems, because companies aren’t allowed to use U.S. dollars. As for Argentina, it requires a lot of red tape. All products have to receive official authorization before they’re allowed into the country.

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