Britain’s technology businesses are growing at an unprecedented rate, according to new research
Britain’s technology businesses are expecting to grow at an exponential rate this year, with the average firm forecasting an 11pc rise in sales, four times the growth in UK GDP growth, which hit 2.6pc in 2014.
According to the companies polled in Barclays’ Fast Growth Tech survey, this growth rate will accelerate again next year, with the average technology firm expecting an additional 15pc in 2016. Of the technology CEOs polled, 16pc are seeking growth of 20pc.
“The fact that many firms are expecting further growth in 2016 shows that this trend isn’t transient and the UK is a real launch pad for innovative tech businesses,” said Sean Duffy, managing director of Barclays’ Technology, Media and Telecoms division, which commissioned the research.
“Investors are seeing the UK as an international talent magnet and a platform to grow or launch their business for a number of compelling reasons, including the culture, light-touch regulation, supportive Government policies and access to finance.”
The research follows a landmark report by Tech City, the Government-backed organisation, which showed that Britain’s technology firms are thriving nationwide. New company formations within the technology sector were up as much as 242pc in Bournemouth, with Liverpool, London and Brighton also showing record growth.
The biggest risks to further expansion in 2015 were identified as increased costs by 21pc of firms, and managing cashflow (19pc). The report highlighted the link between investment and growth; 84pc of the tech companies said that their spend on new technology or equipment had increased growth.
A separate survey by Zurich Insurance also found evidence of renewed confidence in the small business sector.
Its SME Risk Index showed that half of small-to-medium-sized enterprises (SMEs)s are confident the economic situation will improve within the next year, compared to 34pc two years ago. Despite this optimistic economic outlook, profitability remains a serious concern, however. Some 58pc of SMEs are concerned about their profit margins and 62pc are worried about future revenue streams.
This article was written by Rebecca Burn-Callander Enterprise Editor from The Daily Telegraph and was legally licensed through the NewsCred publisher network.