The number of people wanting to start their own business has reached a five-year low, according to the latest NatWest’s entrepreneurship monitor.
Since the vote to leave the European Union, the number of aspiring startup entrepreneurs has dropped to 14 per cent, down from 39 per cent before the EU referendum.
NatWest’s Alison Rose says the figures are a sign of economic uncertainty, but David Petrie, ICAEW Head of Corporate Finance, feels that the “most serious systematic problem is funding innovative companies that need cash up front.”
“We can find money where companies are already profitable, or the technology is proven,” he adds, “but when developing exciting new technology – whether pioneering medicines or cutting-edge engineering – there is a serious gap.”
On the need to recognise the challenges posed by Brexit, Mr Petrie says: “The UK is better at funding innovation than many other countries, but we need to be even better post-Brexit. Once Britain leaves the EU, tariffs on goods going into the EU will almost certainly be imposed, which means our competitive advantage lies in our ability to produce – and therefore fund – world-beating products. We need to encourage investment in high-risk businesses, because that is where innovation lies.”
Whether you’re a startup or a well-established business, cash is king and managing its flow is crucial to your long-term success.
For further information about how our entrepreneurial business experts can help you and your startup business, or to find out how we can assist in maximising the value of any potential Research & Development (R&D) ‘money back for innovation’ claim, as well as manage the often-complex process on your behalf, contact Steve Govey or your usual Beavis Morgan Partner.
In turn, our partner business, BM Structured Finance, specialises in sourcing and restructuring debt finance for small and medium sized businesses. We match the most suitable products to each individual circumstance and work together to ensure compatibility and satisfaction, thereby enhancing the business’ cash flow liquidity and facilitating maximum growth. For more information about how BM Structured Finance can help you and your business, contact Simon Belton or your usual Beavis Morgan Partner.