How can SME investment tackle the growing unemployment in the north?
The North of England is one of the regions that has felt the full force of the tiered systems that have been implemented across the country, in a bid to reduce the spread of the coronavirus.
New analysis has found that the number of people claiming unemployment-related benefits is at the highest level it’s been in more than a quarter of a century. But, could regional investment into SMEs be the answer to tackling this unemployment surge?
Figures from the ONS show that SMEs have created jobs at a rate which is three times higher than that of large businesses over the past five years – adding 1.7million jobs compared to around 650,000. This likely stems from the increased capacity to grow from start-up level right through to unicorn status as some firms do.
Despite the current climate, there are a huge number of SMEs that have adapted quickly to the pandemic and the changes it has ushered in, along with a 12% increase in new businesses starting up during 2020. These new businesses are now looking for investment to help their business grow, and with this, these new small businesses will be able to provide jobs for the millions left unemployed and tackle the regional funding gap.
Most of the areas within tier 3 are those who receive little investment attention. Investors need to start looking outside of London and into the North where there are a number of great investment opportunities. Here at IW, we are doing just that with Rockwater in Hove where we have raised a significant amount of investment from the local community.
SMEs throughout the UK employ around 16million people, highlighting the importance of private capital and investment in to these businesses. With investment, these businesses are primed to grow and create more jobs, helping to bring the UK economy back to where it was pre-pandemic.
To find out how IW Capital could maximise your investment opportunities, please contact the team today on 020 7015 2250, or email info@iwcapital.co.uk