Business Climate Survey 2023: The UK remains a key market for Swedish business

Despite times of uncertainty, Swedish businesses continue to see the UK as a profitable market, with a majority sustaining their investments in the UK operations. Also, an increasing number of businesses recognise the Swedish brand as a key advantage on the market. These are some of the key findings revealed in the 2023 edition of the UK Business Climate Survey.

The Business Climate Survey, now in its fourth consecutive year, has been carried out by the Swedish Chamber of Commerce for the UK in collaboration with Business Sweden and the Embassy of Sweden in London, with the purpose to pinpoint the prospects and hurdles facing Swedish enterprises in the UK market.

Positive outlook
Despite recent years of uncertainty, previous editions of the Business Climate Survey indicate that Swedish companies’ financial results in the UK remain stable – and this year is no exception. 62% of the businesses taking the survey deemed their company’s financial performance as profitable, while 14% reported a loss. Still, 78% of the companies expect their industry turnover to increase in the next 12 months. “The UK is one of the worlds’ leading economies and remains an important market for Swedish businesses. It is reassuring to see that businesses are both making profit and have a positive outlook for the future,” says Fredrik Warneryd, Chief Executive at the Swedish Chamber of Commerce for the UK.

Businesses continue to invest
More than half of the businesses, 56%, say that they will be looking to increase their investments in the country. “The results indicate that Swedish businesses are committed to their UK presence and are in line with the investments we are seeing across the country. We are pleased to see that many businesses continue to grow their footprint in the country.”

Brexit – still a concern for Swedish businesses  
The survey shows that businesses are still finding difficulties managing regulatory affairs as a result of Brexit. Procedures, regulations, and duties concerning customs are found challenging, particularly amongst consumer-based businesses, with 67% reporting that these procedures have implied noticeable negative impacts on their operations. “These results confirm the signals that we pick up from our member businesses, while we appreciate the fact that it takes time for the new relationship between the EU and the UK to settle and for businesses to adapt to the new environment,” Fredrik states.

‘Brand Sweden’ – a key strategic advantage
This year’s results demonstrate that more companies recognise the advantages from enhancing their Swedish roots. 82% of Swedish companies in the UK consider Brand Sweden beneficial for business, compared to last year’s 73%. “The Swedish brand has a long history of resonating well with UK customers, with many prime examples of how brands interact with their ‘Swedishness’. This years’ survey only confirms how Swedish businesses are continuing to maintain and nurture the well-renowned status of ‘Brand Sweden’ on the UK stage,” Fredrik concludes.

UK Business Climate Survey 2023

Global Business Climate Survey 2023