Investors ready to back small businesses despite inflation concerns

Inflation, which has recently reached a new high, continues to represent a major obstacle for small and local businesses in the UK. This was illustrated in a recent study from Capital One which showed that 71% of small business owners have experienced a negative impact on their operations as a result of inflation in the past three months.

Despite these inflationary concerns, the report shows that small business owners remain optimistic in terms of their ability to mitigate the negative impacts of inflation. A study from IW Capital, shows that 58% of Brits plan to shop more at their local high street this year, providing essential support, and 47% expect the small business sector to experience rapid growth in 2022.

SMEs have constantly adapted over the past few years to deal with unprecedented obstacles and new inflationary concerns should be no different. Small businesses have worked so hard throughout the last year, now with many developing creative strategies to stay lucrative amid rising inflation.

Investors are also turning to small and local businesses, providing a platform for them to prosper. With 16% of UK investors looking to back start-ups and newly formed businesses, it seems they will be given an opportunity to continue the success and progression of their companies throughout 2022. The small business sector continues to be vital for the UK business landscape, with SMEs accounting for 99.9% of the UK business population, three-fifths of employment and nearly half of turnover in the UK private sector. In the last quarter of 2021, 56.2% of SMEs reported a rise in earnings versus the same period of 2020.

Working with investors up and down the country, IW Capital has seen tremendous demand for SME investment opportunities and the ability to support growing firms in the sector. 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.