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Small firms key to economic recovery
28th July 2020

By Karen Pickwick

New research shows that more than a third of Brits still find running a business attractive and are positive about jobs and investment for the first time since lockdown.

Luke Davis, CEO of SME investment firm IW Capital, says British employers ‘have turned positive about hiring and investment for the first time since February as the coronavirus lockdown eases’ although companies and consumers remain worried about the outlook for the economy.

A survey by market research firm GfK showed consumer confidence held at its highest level since the lockdown at -27 but a measure of people’s outlook for the economy slipped to -61. A gauge of their personal financial outlook improved to zero, however, probably reflecting increased saving by many households, GfK said.

This comes as new, nationally representative research from IW Capital across 2,006 adult Brits unveiled that 37% still felt that running their own business was attractive despite seeing the plight of other entrepreneurs during the pandemic.
Luke said: “These surveys released today demonstrate the confidence that people and employers are beginning to regain since the covid lockdown period.

“Despite the turbulent time, the UK SME arena, which employs over 16 million people in the UK, are rebuilding and are once again looking to grow and thrive. In fact, the sector before coronavirus was growing at a faster rate than the overall job market and with the results of these surveys today, will hopefully tread a similar path in the near future.”

He said that, with an economic contribution of more than £2 trillion, the success of the UK economy as a whole may in future hinge on the prosperity of SMEs, start-ups and high-growth firms.

“We have seen that businesses have been eager to grow and strive in a post-covid economy and as businesses prosper once again, confidence in the UK economy as a whole will grow.”