Small businesses are back in favour with IFAs says a new report.
Over two thirds of IFAs questioned said that economic recovery has made smaller businesses an attractive investment opportunity.
What’s more, nearly 40% of IFAs said they had clients who were actively looking to invest in UK businesses.
The backdrop is a UK SME sector which has generated more than 700,000 new jobs since 2010. The European Commission’s SME Performance Review reckons that the Gross Value Add of SMEs is €531bn, or 51% of the UK economy.
The figures come from Albion Ventures, one of the largest independent venture capital investors in the UK.
Managing Partner at Albion Ventures Patrick Reeve said: “This is an exciting time for young UK businesses with ambitions to grow. With favourable economic tailwinds and a supportive investor community small firms have a tremendous window of opportunity to make a mark.
“Given this backdrop it’s no surprise that VCTs are attracting high levels of investor interest this tax season. As the tax year-end approaches we’re seeing strong inflows from a wide range of investors both those who are new to the sector as well as seasoned participants. However, a common factor shared by all our investors is a commitment to deploying their capital to support talented British entrepreneurs.”
