Government and location
The government offers grants and assistance to businesses that locate in areas with high unemployment. Incentives include:
- grants - to help with the cost of setting up a business. Grant money does not need to be repaid.
- loans - which are repayable over many years at low rates of interest.
- tax breaks - for example firms may be made exempt from paying business rates.
Overseas location decisions
Setting up a business overseas involves a number of challenges including:
- cultural and language barriers where managers are unfamiliar with local customs
- legal issues where local laws are different
- exchange rate issues - unexpected changes in the value of sterling can have an impact on prices, costs and profits