Despite doubt after the Brexit, investors remain confident in Britain’s small businesses. A study commissioned by IW Capital and Crowdfinders showed that 52% of investors would support UK small to medium sized enterprises (SMEs) with private investment after the EU referendum result.
The study included research of 1,000 UK investors, and was first reported on by smallbusiness.co.uk.
The prominence of the solidarity show with small businesses can be appreciated when compared to the plummeting figures of investments in other areas, after the vote to leave.
Investment sentiment towards property dropped by 35.36% between June and July this year, while sentiment to UK shares dropped by 21.75%.
The future for SMEs post-Brexit
The future looks bright for SMEs post-Brexit, particularly because 70% of investors in the younger age group (18-34) would be likely to invest in an SME.
The study showed that investors are in favour of British SMEs as a ‘viable investment opportunity’ for a future outside the EU.
Luke Davis, CEO of IW Capital and co-founder of Crowdfinders commented on the uncertainty that has surrounded both consumers and investors, and influenced their decisions.
“Our research supports this and shows that there is still a great deal of uncertainty surrounding what the result of the EU referendum will mean for the long-term prospects of the FTSE, the property market and the value of the pound.”
Davis goes on to note how “there is a silver lining from a business perspective as our nation’s investors are willing to support SMEs in the wake of Brexit, something that cannot be said for other investment classes.”
Considering SMEs make up 99.9% of private businesses, it’s important to focus on their continued growth and development when Britain is no longer in the European Union.
Davis also called on investment providers and the government to be able to equip investors with the right tools to make such investment prospects a reality for small businesses.
How do you feel about the future of small businesses investment post-Brexit? Leave your comments in the section below.
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