IW Capital Research Reveals Post Brexit Confidence Towards SMEs is High

29th July 2016

Following Britain’s decision to leave the European Union (EU), financial markets entered a period of uncertainty. No country has left the EU before, and the immediate resignation of former Prime Minister David Cameron left a temporary political vacuum.

This economic and political uncertainty had a negative impact on investor sentiment towards traditional asset classes; according to Lloyds Bank, investor sentiment towards property dropped by 35.36 percentage points between June and July 2016, while sentiment in relation to UK shares and government bonds also dropped sharply.

Earlier this year, research by IW Capital revealed that British investors were confident towards the future growth capabilities of SMEs. To update our research in light of the findings revealed from Lloyds Investor Sentiment, we commissioned a new piece of research to find out whether British investors were still supportive towards the nation’s bustling community of SMEs.

The results are in and we are happy to acknowledge that the findings from our research are resoundingly positive. An independent survey of 1,000 UK investors has revealed that despite mass uncertainty surrounding the financial markets, the majority of investors are confident in the country’s SMEs as an investment vehicle. We found:

  • 52% of British investors will support UK SMEs through private investment channels despite Brexit uncertainty – equating to 12.9 million investors
  • Looking to the future, investors aged 18-34 were even more likely to back small to medium sized businesses, with 70% saying they would invest in SMEs in the current climate
  • Over two thirds (68%) of investors in London were also keen to support British SMEs – the highest proportion from any region of the UK

Our research has clearly resonated with a wide audience as people are keen to see how Brexit will impact both the UK’s SMEs and the nation’s investors. In the first 24 hours since we released the findings, the study has been covered by over a dozen publications, including:

We will be revealing the full report to our network of investors and high-growth businesses next week. As well as investor sentiment towards SMEs, the report will also reveal consumer confidence towards other financial markets, including the FTSE, property and the value of the pound – we look forward to sharing it with you over the coming days.