Market insights: The view from United Kingdom

Sentiment among UK interpreneurs about the current climate for international expansion is lagging the global average, but is still positive at 7.7 out of 10, and 83% expect the environment to become more favourable in the years ahead.

Market diversification was a much bigger motivator to expand internationally here than in any other country studied (48% said so, compared to 35% globally), and the proportion has increased from 31% in 2024. This desire to reduce dependence on any one market may indicate that, a decade on from the Brexit vote, British businesses are still dealing with the implications of no longer being in the EU.

They are also more likely than their peers elsewhere in the world to say they struggled to find the right local partners with whom to build reliable and trustworthy relationships as they went global – in fact this was their number one challenge (for 47%).

Tariffs are reported to have had a lower impact on global organisational strategy than the average (49% said significant, compared to 57% globally), perhaps because the UK was spared some of the severity of US tariffs imposed on many other countries in 2025.

However favourable trade agreements are now a number one priority when considering target countries – 49% said so, up from 36% in 2024.

As elsewhere, British interpreneurs reported struggling to balance global standards with local flexibility as the main challenge in maintaining organisational culture while expanding overseas (42%). However, the second biggest issue was communicating culture consistently across countries (higher than the global average at 36% versus 29%).

These findings broadly reflect what we’re seeing in the UK. There’s a cautious but genuine optimism about international expansion.

This mindset is being driven by pressure on domestic markets, alongside better access to technology, AI and global networks that make expansion feel more achievable.

From recent client conversations, the main concerns are unexpected costs, regulatory change and finding the right people on the ground. Equally, there’s real enthusiasm about reaching new customers, using technology to scale faster and building partnerships that accelerate growth.

The key takeaway for international businesses is that success hinges on getting local insight right. Firms often underestimate the complexity of regulation, culture and talent in new markets, and the value of trusted local advisers and partners in navigating that.

Alex Peal
Chair of Kreston UK and Ireland and Managing Partner at James Cowper Kreston