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Business confidence at all-time high as economy reopens

Investor sentiment to back UK businesses rising as lockdown measures ease.

Luke Davis, CEO of IW Capital discusses how pent-up demand will play a vital role in the nation’s recovery and future growth.

Britain’s economy is poised for recovery as the nation’s lockdown measures eased last week, with sales up 47% compared to the reopening of shops after the first lockdown in June. This has sent business confidence skyrocketing to its highest level in 13 years, with the success of the UK’s vaccination programme boosting hopes of a sharp recovery this year.

This boost in confidence has now translated into the sentiment among investors to invest in UK business, with many having faith that pent-up demand and post-lockdown spending will act as a springboard to recovery for our economy and will be a catalyst for future growth later this year. With private investors representing a key barometer of where the money is going post-lockdown, this will be welcomed news to Uk businesses as they look to capitalise this summer. 

Key statistics: 

– 44% of investors are now looking to back UK-based companies, instead of global firms 

– 19% of investors believe the coronavirus pandemic has opened more investment opportunities than it has closed 

– Nearly half (45%) of UK investors will back green or sustainable companies in 2021

–  36% are backing stocks and shares an investment option

–  34% are investing in life sciences, including Biotech, Medtech & Pharma, a 160% increase from 2019

–  29% of UK investors will back online retail businesses and technology 

–  Over a quarter (27%) of investors are investing in property 

–  26% will invest in Fintech 

–  18% of investors will back the creative industries 

–  16% are investing in the hospitality sector

–  With 800,00 newly formed businesses in 2021, 16% of UK investors are backing start-ups

Luke Davis, CEO of IW Capital: 

“As 2021 began under a national lockdown, economists expected that the tight restrictions would have an impact on the economy in the first quarter, but the success of the vaccine roll-out and the reopening of shops and hospitality has given businesses confidence that the UK economy will rebound this year. Pent-up demand and post-lockdown spending will act as a springboard to recovery, playing a key role in the re-emergence of businesses and sectors across the country, and act as a catalyst for future growth. 

“UK businesses have shown true resilience throughout the year and we have even seen the emergence of new businesses starting up, which is sure to create some exciting investment opportunities and will play a key role in the nation’s recovery. Investors now need to look towards these businesses in order to enable future growth post-pandemic. 

“Working with both entrepreneurs and investors, there is a clear desire from the small business community for growth investment and to take a big step growth-wise in 2021. Small businesses grow by hiring and this sector will be key not only to growing the economy but also combating unemployment. Each problem or crisis will have winners and losers but those that are adaptable and in position to take advantage of the situation could see a big increase for business in 2021.

“People want to get out and spend, businesses want to grow and investors want to help them do that, it’s a perfect storm for rapid growth. Businesses will bounce back along as no one will want to stay at home after the year we’ve had and I really believe that. Working with local residents on redeveloping the pub and hospitality venue Rockwater Hove has shown me how much people want, more than ever, a place to come together as a community.”

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