In an annual report released by the Government yesterday, it was revealed that the number of private sector businesses in the UK in 2019 reached 5.9million – a record number growing by over 200,000 – an increase of 3.5%. This comes after the first recorded decrease in 2018 as Brexit uncertainty took its toll on business formation and survival.
This year, however, entrepreneurs and business leaders have regained their confidence in the future and have acted on their ambition to help bolster the UK’s business population.
Small and Medium-sized Enterprises (SMEs) now make up over 99.9% of all private sector firms across the UK. They also account for around 60% (16 million) of jobs in the UK, while adding £2.1 trillion to the British economy.
These figures fit the ambition we see from the entrepreneurs we work with on a daily basis and also underlines the vital importance of the SME economy to the UK. Both investors and business founders want to push on to make the most of the opportunities that will present themselves when we do eventually leave the EU. If we can foster an environment of optimism in this sector, growth will surely follow.
We have seen more demand than ever before to invest in growing SMEs, as well as more entrepreneurs looking for investment. 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 that need assistance to plan for the future and find the right kind of investment in order to help them reach the next level.