Brexit and the Investment Arena

29th January 2020

This Friday will see the UK leave the European Union after over three and a half years of negotiations and extensions and two general elections. This period has left many uncertain of what the future may hold – especially in the world of business. Now, however, with increased confidence in the UK, investors and entrepreneurs are looking to kick on and make the most of opportunities presented by this new era of British history.

It has been speculated that the numbers of Mergers and Acquisitions are set to take off, and many will be looking to invest their capital amidst the increased certainty that the Brexit date and Conservative election win has provided.

The small business community is one section of the economy that has been most affected, as one of the areas most reliant on private investment and therefore the confidence of private investors to commit capital. Schemes such as the Enterprise Investment Scheme have been a hugely important source of finance for start-ups and scale-ups in the last 25 years, providing £20billion of growth capital to businesses otherwise rejected by traditional finance sources. In 2017/18 the EIS experienced the highest amount of investment ever, with close to £2billion of support for growing start-ups and scale-ups.

Both investors and the businesses they fund have a strong desire to push on to make the most of opportunities that will present themselves when we do leave the EU on Friday.

We have seen more demand than ever before to invest in growing SMEs, as well as more entrepreneurs looking for investment, and now with the increased certainty and confidence we expect to see this continue. Private and alternative finance will play an important role in facilitating this in the coming years as the EIS and low interest rates encourage investors to make use of their capital.

Supporting and allowing this sector to grow at the pace at which it could will undoubtedly have a marked effect on the economy as a whole, creating jobs and facilitating growth at a scale that is almost unheard of in large businesses unsuitable to rapid change and adaptation to new conditions.

IW Capital is keen to help SMEs across the country that need assistance to plan for the future and find the right kind of investment in order to help them reach the next level.