Brits turn to investment opportunities outside of stocks and shares
Due to external factors affecting the business environment, the FTSE 100 saw the worst week of losses since June 2020 in May. This has caused Brits to change their investment habits, with a study from IW Capital showing that 29% of the population are actively looking for new investment opportunities outside of stocks and shares. Combined with rising inflation and the cost-of-living crisis, the importance of financial stability has been highlighted to Brits. It, therefore, comes as no surprise to see them searching for ways to supplement their salaries.
However, the pandemic brought the issue of work-life balance to the forefront of people’s minds, and IW Capital’s study found that 39% of Brits even see passive income sources as a total alternative to their day jobs. For many though, it could take some time before they’re able to live life totally on their own terms, with 32% reporting that they’re looking to become financially independent within the next ten years via sources of passive income.
One of the most interesting sectors, from an investment standpoint, could be the small business sector. UK SMEs have battled various obstacles over the past few years to register impressive growth, with 56.2% of small businesses reporting a rise in earnings in the last quarter of 2021 versus the same period in 2020. 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.
It’s particularly interesting to see that people are looking beyond the typical options of stocks and shares to things like small business investing in the UK. The SME sector is one that has shown some promising growth of late, with nearly half of UK small businesses now looking to hire new employees after a promising start to the year. The Enterprise Investment Scheme (EIS) also does a great job in incentivising investment in this area, and small businesses in the UK have benefitted massively from it over the past 25 years, fuelling growth and job creation at an impressive scale. Another aspect that interests people when investing in SMEs is the fact that it can benefit their local community directly, and IW Capital is looking forward to seeing more growth in this sector in the years to come.
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.