10 Markets British businesses should avoid in 2026
New research has revealed the markets that Brits should avoid as nearly one in three UK businesses are looking to prioritise overseas expansion across the next decade.
Experts at the cultural intelligence platform Country Navigator have analysed factors such as cultural similarities to the UK, corporate tax rates, GDP growth and more, to reveal the best and worst countries for British businesses to expand.
The Least Successful Countries for Global Business Expansion:
Rank | Business Country | Headline Corporate Tax Rate | Annual GDP Growth Rate | Political Stability | Unemployment Rate | Cultural similarity score | Annual Google Searches for “Starting a Business in (Country)” | Business Expansion Score /10 |
1 | Chile | 27.0% | 2.6% | 50.2% | 9.0% | 6.4 | 200 | 3.11 |
2 | Germany | 30.0% | -0.5% | 66.4% | 3.7% | 4.1 | 960 | 3.12 |
3 | Colombia | 35.0% | 1.6% | 19.0% | 8.3% | 7.4 | 1,600 | 3.37 |
4 | Finland | 20.0% | 0.4% | 71.1% | 9.5% | 3.0 | 2,310 | 3.57 |
5 | Austria | 23.0% | -0.7% | 71.6% | 5.6% | 5.2 | 360 | 3.66 |
6 | Estonia | 22.0% | -0.1% | 69.2% | 8.3% | – | 2,140 | 3.83 |
7 | Belgium | 25.0% | 1.1% | 58.3% | 5.9% | 6.7 | 910 | 3.87 |
8 | Latvia | 20.0% | 0.0% | 66.8% | 6.6% | – | 1,080 | 4.06 |
9 | Slovakia | 24.0% | 1.9% | 64.5% | 5.4% | 6.2 | 250 | 4.29 |
20 | Greece | 22.0% | 2.1% | 54.0% | 8.5% | 6.8 | 560 | 4.31 |
Chile ranks as the weakest country for business expansion, with a score of 3.11 out of 10. This ranking is completed by a combination of high unemployment rates, lower political stability, and low search interest Brits for business wanting to expand overseas.
Following in 2nd is Germany, with a Business Expansion Score of 3.12 out of 10.
Whilst Germany ranks close to the average with a selection of the factors considered in the study, headline corporate tax rate is at 30% – the 3rd highest of any country. Germany also has the third lowest annual GDP growth rate, with a reduction of 0.5%.
Columbia is the 3rd weakest country when it comes to business expansion
The low score of 3.37 out of 10 awarded to Columbia is because of the country returning the highest headline corporate tax rate (35%), the 7th highest unemployment rate (8.3%), and the 2nd lowest political stability rate (19%).
Further insights into the state of Global Business Expansion:
Ireland ranks as the best country for business expansion, scoring 7.67 out of 10, followed by Poland and Portugal in second and third place.
Several of the world’s largest markets rank outside the top 20, including Germany (35th), France (21st), and Italy (25th).
The most culturally aligned markets with the UK include the US, Finland, Canada, the Netherlands, and Denmark, all of which have lower average cultural distance scores and fewer barriers to communication and collaboration.
Chris Crosby, CEO at Country Navigator, explains what businesses need to consider before expanding internationally:
“Expanding into a new market is often approached as a structural challenge – securing the right tax setup, hiring locally, and navigating regulation. In practice, the biggest barriers tend to be operational.
“How decisions are made, how feedback is delivered, and how relationships are built can vary significantly between markets. In unfamiliar environments, these differences can slow progress, create misalignment within teams, and affect how quickly a business gains traction.
“This is particularly relevant when entering markets with strong fundamentals, but that feel less familiar. Without a clear understanding of local expectations, businesses can struggle to translate strategy into execution, even when the opportunity is clear.
“For leadership teams, this shifts the focus from market selection to team readiness. Preparing employees to operate effectively across different cultural contexts through approaches such as cultural intelligence training can help reduce friction, improve collaboration, and accelerate integration.
“In my experience, the difference between a successful expansion and a stalled one is not the market itself, but how well a business adapts to it.”