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Britain is one of the world’s developed nations having an economy that is ranked as being the seventh largest in the world, and the third largest in Europe. The country is one with a good economic environment for anyone who would wish to start a business. But even with this favorable economic climate there is still the issue of risks that are involved in the establishment of any business. This is especially so with the current economic state of the country.

The first benefit that one stands to gain is in terms of the tax relief that setting up a new business in Britain will offer. This is due to measures that were proposed in the 2011 budget. These include the increase in the relief from tax of new businesses making investments. There was also the introduction of up to 50% tax break on start-ups up to a cap of about 100 000 pounds(Prince, 2011).

There is also the favorable advantage offered by being close to a ready market. This is in the fact that setting up a business in Britain will set one up for entry into the European market. This is an area that will offer one ready demand for their products or services with minimal restrictions as to the movement of goods.

The only risk that one may face as at this time is the recession that is facing Britain and the rest of the Euro zone area. This coupled with the fact that banks have been forced to tighten lending may limit the growth of any business. One may risk losing all they have invested in a given venture if they come into liquidity or cash flow issues (Elliott, 2012). This is usually the major reason as to why most start-ups would fail only after a few months of being in business. But it still remains to be something that  a business owner can manage. 

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