The importance of entrepreneurship to the UK economy

25th April 2019

The small business arena makes a hugely significant contribution to the UK economy, forming 98% of private sector businesses. This is due in no small part to the entrepreneurialism of the UK’s business leaders and start-up founders who provide a fantastic range of innovative ideas and SMEs that drive the private sector forward.

Helping entrepreneurs to grow their business through alternative finance such as EIS and our secured debt fund not only helps grow the UK SME arena but also offers tremendous growth opportunities and returns for investors who choose to back the innovative and dynamic companies, such as those within IW Capital’s portfolio.

Clearly, supporting SMEs is hugely important for the UK economy as they represent the employment of around 16 million people in the UK, with this number currently growing at a rate that is three times faster than for big corporations. Fueling this growth will be key moving into a post-EU economic landscape that will rely even more heavily on domestic business and job creation.

As previously stated SMEs make up around 98% of businesses in the UK private sector making their founding and growth more closely linked to the economy as a whole, rather than being dependent on the success of a single product or service as individual big corporations can be. These small businesses contribute £1.9trillion each year towards the economy of the UK, so we can see clearly that a correlation between the sector and the economy will exist, but perhaps more importantly given the size of the contribution there will undoubtedly be causation. In other words, the health and wealth of SMEs will directly affect the state of the UK economy rather than just fluctuating along with it through the peaks and troughs of the global markets.

The alternative finance arena is going from strength to strength. IW Capital are building upon buoyant entrepreneurial sentiment and record deal flow at the beginning of the new tax year to increase its innovative offering to the nation’s investors and SMEs.