Optimism high despite Brexit vote, says BGF

BRITAIN is still a great place to start and grow a business despite concern about a drop in economic growth following the Brexit vote, according the Business Growth Fund.

BGF’s recent Growth Fund Climate Index found that 83% of respondents in an optimistic outlook, while just 38% reported postponing key business decisions in the run up to the vote.

According to the Index – which polls entrepreneurs and business leaders in the North – 89% of respondents expect a short-term fall in economic growth.

However, when asked about the longer-term impact, 50% expected growth to fall over this period, signalling an expectation that the outlook would improve.

Since the 24 June, BGF, which provides long-term equity investments, has provided investments to three Northern-headquartered businesses that are progressing with their growth plans. These include Manchester-headquartered High Access Maintenance and Better Bathrooms and Leeds-based Pharmacy2U for the merger with ChemistDirect.co.uk.

Andy Gregory, BGF’s regional director for the North said: “BGF has invested £28.5m in the North in the past month.

“While these investments were already in progress prior to the vote, the fact that business owners are still prepared to pursue growth is a really positive sign.

“Unsurprisingly, the poll highlights the concerns businesses have in regards to future economic uncertainty. But there is also a strong and clear message among respondents that the fundamentals that make the UK so attractive to growing businesses have not disappeared.”

Looking forward to the upcoming negotiations with the EU, a majority of those surveyed (55%) felt that continued access to the Single Market should be the priority during discussions with Europe.

This was followed by attracting overseas businesses to remain or invest in the UK (25%) and ensuring that businesses can attract and hire the best international skills and talent (9%).

There was significant agreement amongst respondents on the sectoral impact of Brexit. Some 44% believed that the financial services sector will be most affected by Britain’s decision to leave the European Union. This was followed by manufacturing (24 per cent) and construction (10 per cent).

Gregory continued: “We know that the issues of access to capital, talent and markets are as pressing as ever, especially for smaller growing companies.

“Given the current and coming turmoil in British politics, businesses need to step up to the challenges and opportunities of a post-Brexit Britain – and that includes BGF.”

This edition of the Growth Climate Index, BGF’s tri-annual monitor of the environment for business growth in the UK, dealt specifically with the consequences of Britain’s vote to leave the European Union.