The good news for small to medium-sized enterprises (SMEs) in the UK is that British investors are still interested in supporting such companies through private investment channels despite the uncertainty surrounding Brexit.
New research from IW Capital has found this to be the case with 52 per cent of British investors, which amounts to 12.9 million people… certainly great news for any smaller firms looking to expand in the months ahead.
It was also seen that investors aged between 18 and 34 were even more likely to offer their support to SMEs, with 70 per cent saying they would invest in such firms in the current climate. And 68 per cent of investors in London said that they were keen to support British SMEs, the highest proportion from any region across the entire country.
This is certainly heartening news to hear after Lloyds Bank revealed a few weeks ago that between June and July 2016 investor sentiment towards property fell by 35.35 percentage points, while sentiment relating to shares and government bonds also dropped sharply.
Earlier this month, the Bank of England (BoE) decided to cut interest rates for the first time in seven years, which is likely to encourage investors to take more risks. The BoE move comes in response to data suggesting that the UK economy could see a sharp slowdown following the EU referendum result on June 24th. Investors are likely to have to accept more capital risk in the face of a lower base rate in order to maintain or enhance their income.
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