Throughout the pandemic and one of the most turbulent economic periods in history, small businesses have shown true resilience against the tight restrictions that have been put in place and the severe impacts this had had on their ability to trade. Yet, as the UK ventures into the new year under continued lockdown restrictions and with Covid still ravaging the economy, SMEs across UK and Ireland remain optimistic for what’s to come as they plan for the year ahead.
In a recent report commissioned by the Vistage, it has been found that 54% of SMEs members in the UK and Ireland are optimistic that the economic conditions will improve in the next 12 months, with 71% of small businesses expecting their sales revenues to rise in 2021. This furthermore highlights the confidence among small business owners that the economy is set to take a positive turn this year, and with the nation finally finding its footing post-Brexit and the rollout of vaccines increasing everyday, there are reasons to be optimistic about the year ahead.
Such optimism among small businesses shows that there is a clear desire for growth investment in 2021, with private capital being a vital catalyst for wider economic growth. With a 12% increase in new businesses starting up during 2020 compared to 2019 and with 20% of people looking to start or are in the process of starting a new business despite Covid, 2021 is set to create some exciting investment opportunities for investors throughout the country and with business sentiment on the rise, we are sure to see a boost to the wider British economy.
CEO of IW Capital, Luke Davis:
“It's truly great to see that SMEs throughout the nation are looking to the year ahead with optimism and have high hopes that their sales revenues are going to rise. As we turn a new page this year, it’s vital that these businesses are supported through equity investment to enable faster recovery and future growth, that will be a huge asset in the resurgence of our economy, with the SME community making up 99.9% of private sector businesses.
“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.”