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Four-fifths of UK startups confident about growth prospects

Publication Date: 11 Jul 2019 - By Gaurav Sharma (Associate Editor ReachX) By Gaurav Sharma (Associate Editor ReachX)
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An industry study of the UK’s vibrant startup scene suggests concerns over the economy and Brexit have failed to dampen their optimism.  

Studio Graphene’s quarterly tech tracker survey of over 100 business leaders at early stage UK-based technology companies found nearly 80% of respondents to be ‘confident’ (41%) or ‘very confident’ (39%) about their growth prospects for the coming 12 months; up 1% on the previous quarter. 

However, for 2020, only 73% of tech startups plan to hire more staff (18% lower than in Q1 2019), and just 59% intend to raise finance in (-7%), but 70% do plan to expand into new territories (+3%).

Hiring the right talent remains the biggest challenge facing tech startups in the UK right now – 54% cited this as an obstacle to growth.

Elsewhere, Studio Graphene’s research found that hiring the right talent remains the biggest challenge facing tech startups in the UK right now – 54% cited this as an obstacle to growth. This was followed by increasing sales (48%), securing private investment (41%), enhancing their product (36%) and keeping pace with competitors (24%).

Looking to the political landscape, there was a largely even split between those businesses who felt the outcome of the Tory leadership would affect their growth prospects (51%) and those who did not think it would have a significant bearing on their company (49%).

But the confidence of UK tech startups has remained consistent over the past quarter despite on-going Brexit uncertainty and the Conservative Party’s leadership contest. 

Elsewhere, Studio Graphene’s research found that hiring the right talent remains the biggest challenge facing tech startups in the UK right now – 54% cited this as an obstacle to growth. This was followed by increasing sales (48%), securing private investment (41%), enhancing their product (36%) and keeping pace with competitors (24%).

Ritam Gandhi, Founder and Director of Studio Graphene, noted that despite the resilience the slight dip in the number of companies seeking investment or planning to hire more people should sound a warning that the on-going political and economic uncertainty is resulting in a slightly more conservative approach among some entrepreneurs. 
“Clearly, startups need clarity on the country’s future if they are to effectively shape their own – the government must recognise otherwise both our tech startups and the wider economy will suffer.”

Disclosure:

I have no positions in any of the securities referenced in the contribution

I do not use any non-public, material information in this contribution

To the best of my knowledge, the views expressed in this contribution comply with UK law

I agree with the terms and conditions of ReachX

This contribution is for informational purpose and does not constitute investment advice nor is it an offer to sell or buy, nor is it a recommendation for any security.

Gaurav Sharma (Associate Editor ReachX)

 

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