New research from Howden Employee Benefits – conducted by Beauhurst – reveals that international growth is being driven by a new breed of business: the emerging multinational.
34,000 businesses in the UK now have multinational operations, spanning 128 countries. 84% of UK businesses with operations in other countries are SMEs, proving that scaling across borders is no longer reserved for massive corporations. Driven by a digital and technology boom, small, agile firms are going global earlier in their lifecycle than ever before.
This international surge is heavily propelled by the UK’s youngest tech enterprises. There are currently 24.7k of these companies that are fewer than five years old. Within this next-generation cohort, more than 3,000 operate in the Digital and Technology sector, including 565 specialised AI companies expanding overseas.
Industries which are driving multinational expansion from the UK
| Industry | Number of outbound companies (as of May 2026) |
| Digital & technology | 25.6k |
| Professional & business services | 22.0k |
| Creative Industries | 21.1k |
| Application software | 19.1k |
| Manufacturing | 17.4k |
| Online retailing | 16.5k |
| Cars, motorcycles & other road vehicles | 14.8k |
| Distribution & wholesale | 12.6k |
| Clothes | 11.1k |
| Parts & components | 8.4k |
Europe remains the dominant destination for this expansion by a considerable margin. UK companies with outbound activity account for 84.8k operations across Europe – nearly five times the volume of the next largest region. Though Europe is dominant, other regions such as Asia are growing in prominence.
More than 17,000 UK businesses now have operations in Asia, while nearly 9,000 do so in the Pacific. Meanwhile, the UK itself has become a hyper-competitive magnet for international commerce, recording 115k inbound companies navigating the local market as of May 2026.
The cross-border talent and compliance roadblock
While entering new markets has never been easier, managing a global workforce poses a severe operational hurdle for small and medium-sized firms.
A company with 50 employees scaling across multiple borders cannot manage complex legal and regulatory obligations in the way a traditional multinational does, and tends to place less emphasis on establishing a competitive employee benefits package (according to REBA, 50% of multinational businesses do not have one in place), which can be vital in building culture and attracting and retaining talent in a competitive marketplace.
When a fast-growing UK scale up business places remote sales or engineering teams into Europe or the US, they face an immediate compliance and cultural roadblock. In talent hubs like London, competition for AI and tech expertise is fierce. Startups risk either overpaying for fragmented, expensive local insurance plans or losing critical talent entirely due to weak, non-compliant benefit structures.
Mark Ramsook, Managing Director, Global Employee Benefits Services, at Howden Employee Benefits, commented: “To win the international talent war, emerging multinationals need enterprise-grade benefit structures built for lean teams. Many are scaling without a cross-border partner to bridge that gap.
For UK firms operating overseas, benefit design, financing models and benchmarking are essential components. They let agile tech and AI businesses offer consistent, compliant and competitive packages to small, distributed teams, without the administrative burden a traditional enterprise carries.
For inbound firms, the challenge is translation: converting expectations like US-style 401(k) and healthcare into local UK equivalents such as private medical insurance, auto-enrolment pensions and life assurance, so they can attract and retain local talent from day one.
As the line between local start-ups and global enterprises blurs, a compliant, localised and competitive benefits proposition is no longer optional. It is increasingly what separates businesses that scale internationally from those that stall.”
To help businesses manage this transition, Howden Employee Benefits has developed the Multinational Guide. Howden works with growing and mid-sized multinationals – businesses that are often too complex for a local broker to coordinate effectively, but that aren’t the right fit for consultancies working with very large corporations.
