The appetite for investing in UK small businesses is growing. That’s conclusion of the British Business Bank’s Small Business Equity Tracker 2019 report released today.
Despite a climate of continued global economic and political uncertainty, the report finds that the amount of equity invested in smaller UK businesses rose 5% to £6.7 billion in 2018, the highest amount recorded. In terms of venture capital, the UK market for small business is growing at a faster rate than the US.
The UK tech sector remains highly attractive. Small tech businesses received 44% of all UK equity investment. The regional picture also is particularly strong. Total small business equity investment outside the capital increasing by 29% even as investment in London slowed. The East of England, North East, and West Midlands are three regions driving this increase, with equity investment increasing by 118%, 115% and 81% respectively in 2018. Several UK regions also saw large increases in the number of deals in 2018 – up by 65% in the North East, 15% in Yorkshire and Humber and 11% in Wales.
This annual, in-depth review of UK equity markets for smaller businesses provides a unique picture of the smaller business equity market. Not only does it inform the development of the Bank’s own strategy, but also wider developments in both the market and government policy.
“This is a clear sign of investor confidence in British smaller businesses and their potential for growth”, Keith Morgan, CEO, British Business Bank, commented, adding: “We are particularly pleased to see a 29% increase in investment outside of London. The British Business Bank continues to work to address regional imbalances in access to investment to ensure smaller businesses across the UK can access the equity finance they need to fulfill their growth potential.”
You can read the full report in our Knowledge Bank