Looking To The Future: What The New Year could Bring For UK SMEs
Throughout the year, small businesses have shown true resilience against Covid, the tight restrictions put in place and with the imminent outcome of Brexit. Now with news of new Covid strain and the restrictions put in place set to continue into the new year, short-term prospects for UK SMEs may look bleak. But, with the vaccines rollout likely by the new year and some form of normality on the horizon, we could see a real resurgence for UK SMEs in the medium-term.
Despite the current climate, throughout the year UK SMEs have shown resilience and have adapted quickly to the pandemic and the changes it has ushered in. Any outcome in the new year will represent another opportunity to adapt and grow – something that SMEs have shown they can do this year. In addition to this, the number of online job advertisements has reached 1.4million for the first time this year, further highlighting business growth across the country which is sure to extend into the new year.
Equity investment is a vital catalyst for wider economic growth – with the UK’s high net worth community providing essential early indicators for the direction of wealth at a time where the distribution of capital is key. With a 12% increase in new businesses starting up during 2020 compared to 2019, the new year is set to create some exciting investment opportunities for investors throughout the country and some that are sure to boost the wider British economy.
CEO of IW Capital, Luke Davis:
“Each period of disruption offers opportunity for companies to adapt quickly to the changing times and although there has been a lot of worry and negativity surrounding the new restrictions, we have to look to the positives with one of them being the roll out of the Covid vaccines. This is sure to have a huge impact on not only our economy but our workforce and will be a vital catalyst in the resurgence of our economy.
“Working with both entrepreneurs and investors, there is a clear desire from the small business community for growth investment and to take a big step growth-wise in 2021. Small businesses grow by hiring and this sector will be key not only to growing the economy but also combating unemployment. Each problem or crisis will have winners and losers but those that are adaptable and in position to take advantage of the situation could see a big increase for business in 2021.
“Making growth investment more easily available to small businesses that are looking to grow should be a priority. The last time that the Government-backed EIS was extended, it resulted in a significant jump in private investment into small businesses. Replicating this effect with new, or increased, incentives would provide a much needed boost to a section of the economy that is most in need, and so we hope this will be addressed in the near future.”