Following the Brexit vote, the UK economy has been shrouded in uncertainty. However, a new survey shows that many investors are looking upwards as we settle into the new financial year, with a higher risk appetite to tap into new businesses.
The new survey of 1,000 people was carried out by IW Capital, a London-based private equity firm. The subjects have between 10,000 and £250,000 worth of investments, outside of properties and pensions. They were asked their opinion on the current financial landscape.
44% of them said that they see Brexit as a having a positive impact on their financial strategy for the year ahead. 22% think there won’t be any notable changes at all.
The survey also shows that 13% of the subjects believe that private equity investments into UK businesses hold the biggest opportunities for the rest of 2017. 23% of those based in London and 17% of millennials believe this as well. IW Capital says this is sign that many are looking to add to their property based investments.
The report also found that 27% of the survey subjects believe that technological advancements and innovation are the most important factors currently driving the UK economy.
In their report accompanying the survey published, IW Capital pointed out the fact the role of private investments in terms of supporting the nation’s digital economy cannot be ignored.
Data from Tech Nation was used by IW Capital in its report. The data was generated from a major research project on the UK’s digital tech scene. It showed that in 2016, £6.8bn was secured in venture capital funding and private equity digital tech investments. This is a 50% difference in numbers posted anywhere across the EU. The UK digital economy is worth more than £100bn and it is where most British investors are showing the most confidence over the next financial year.
Similarly, the Federation of Small Businesses showed that confidence among the small firms across the UK has risen to its highest levels in more than a year, even in the face of rising business costs. According to the FSB, the confidence is as a result of increased international trade. Nearly 16% of firms posted a rise in export activity over the past quarter.
The new survey and reports from the FSB and IW Capital paints a positive picture for the UK economy, in the midst of the current air of uncertainty. With the French elections now in full swing, there is already talk of a so-called ‘Frexit’ referendum being on the cards.
This would likely happen in the event that the far right Euro sceptic Marine Le Pen wins the polls when France decides in a few weeks’ time. On top of this the UK’s own snap general election has thrown Brexit into the mix once more.
Voters will be asking themselves whether they want to so-called hard Brexit being proposed by the Conservative Party, or some kind of more amicable separation that might be proposed by the opposition parties.