Brits turn to small business investing
Brits are taking a different view on their investing habits with people planning to invest in passive income sources this year. What’s more, they are actively looking for new investment opportunities outside of stocks and shares to achieve their financial goals – this is where small business investing is becoming an increasingly attractive investment opportunity for Brits.
Passive income is now the second most popular reason for individuals to invest, as 51% of investors cite it as the predominant reason to invest. With the pandemic and cost-of-living crisis highlighting the importance of financial stability for Brits, it comes as no surprise to see them searching for ways to supplement their salaries. It’s particularly interesting to see that people are looking beyond the typical options of stocks and shares and towards opportunities such as small business investing, with 47% of Brits expecting the small business sector to experience rapid growth in 2022. The SME sector is one that has shown some promising growth of late, with nearly half of UK small businesses are now looking to hire new employees after a promising start to the year.
With 16% of UK investors looking to back start-ups and newly formed businesses, it seems UK SMEs will be given a platform to continue the success and progression of their companies throughout 2022. SMEs account for 99.9% of the UK business population and have battled various obstacles over the past few years to register impressive growth throughout 2021. SMEs now account for three-fifths of the employment and nearly half of turnover in the UK private sector.
Related to this, the government’s EIS (Enterprise Investment Scheme) could be an important trend throughout 2022, as investors are offered an incentive to invest in the small business sector. Under the scheme investors are provided with tax reliefs when they choose to invest in SMEs, making it an appealing offering and increasing investment in the SME arena. This then means that more small businesses in the UK are receiving a timely injection of capital which helps them to grow and take their companies to the next level.
To find out how IW Capital could maximise your investment opportunities, please contact the team today on 020 7015 2250, or email firstname.lastname@example.org.