Should business start-ups be afraid of Brexit?
The number of UK start-ups saw a dramatic fall last year which experts are blaming on Brexit. The annual UK Local Growth Dashboard Report by the Enterprise Research Centre (ERC), a research institute made up of several universities, has revealed there was a huge 42,000 fewer new business start-ups in the UK between 2017 and 2018, that’s a 13% drop.
Businesses continue to wait for Brexit certainty
Most of the country has seen a reduction in the number of new businesses, including Scotland, Wales and Northern Ireland, but the biggest fall was in Swindon and Wiltshire, which saw a staggering 45% drop. However, it’s not all doom and gloom as not far away in Worcestershire, new businesses fared much better with the region experiencing a 9.2% increase.
Experts believe the slowdown is, inevitably, caused by the uncertainty of Brexit. Deputy Director of the ERC Mark Hart explains that ‘budding entrepreneurs are clearly holding their breath waiting for some clarity about the outcome of Brexit’. He goes on to outline his worry that, ‘if the trend continues, we’ll see fewer jobs created by dynamic young firms’. It seems that as established organisations are also waiting for the apparently elusive Brexit deal and/or exit, this slowdown could have a very real detrimental impact on the UK’s wider economy and employment figures.
Start ups with the right idea will thrive
Sarah Turner, co-founder and CEO of Angel Academe, an investment group aimed at women, has a more optimistic view, saying while she is ‘sure Brexit is causing uncertainty, good businesses who can prove strong demand for their product or service are still able to raise funding and, in certain niches, at very high valuations.’ Indeed, any budding entrepreneur with a great idea that solves their target audiences’ problems perfectly will always find a buyer for their product or service. With the right help and guidance from a successful business expert who has been there all before, ambitious leaders of the future will thrive, even in these uncertain times.
Are you an ambitious entrepreneur with a promising business, service or product looking for the right investment? At Wessex Dragons we facilitate the growth of great ideas with our video-based pitching platform, a simple way for those hoping to raise capital to meet hungry investors searching for their next big investment. To learn more, contact the team today.
