Brexit is a hot topic of discussion for companies in a range of different sectors lately. Around half of the technology companies associated with “scaling up” other organisations aren’t worried that Brexit will have a negative impact on their brand, while another 30% suggest that they could actually benefit from the change. This information comes from a new report by the tax, investment, and accountancy group, Smith & Williamson.
The months are gradually ticking away as the UK prepares to leave the European Union, and findings suggest that high-growth companies in the technology sector are in a “bullish” mood. To translate that into plain English, people are still pushing for growth, with many tech brands taking on new staff (90%) to handle growth, and around half reporting improved financial health.
The Tech Space Stays Optimistic
Scale-up companies in the technology space are generally optimistic about government policies according to the Smith & Williamson study. One in three said that they could benefit from the upcoming Apprenticeship Levy, compared to only 10% that were critical of it. 68% of tech scale-up companies say that they feel Government policies are supportive of their business.
As an enterprise that has grown in either revenue or headcount by approximately 20% per year over the last three years, the tech scale-up sector drives a serious portion of our economic growth. That’s why Smith and Williamson decided to launch their sentiment study. According to the Scale-up lead in the organisation, Fergus Caheny, it’s been exciting to gain an insight into how these successful companies feel about upcoming changes in the UK business sector.
Smith & Williamson believe that policy-makers will need to do their part to accommodate the positive nature of scale-up companies. While the study findings show that the scale-up business community in the tech sector feels relatively positive about Brexit, Smith & Williamson feel that they’ll only be able to see the true scope of the business opportunity when they have further clarity on the UK’s trading position.
What Sets Scale-up Companies Apart?
As well as looking at the overall attitude that tech scale-up companies have towards Brexit and similar policies, the study also looked at what sets scale-up organisations and their founders apart from other businesses. One suggestion that Smith & Williamson made is that the unique approach that these firms have towards technology helps to give them an edge. This could also explain why some of the younger, digitally-native entrepreneurs in the space are thriving.
Around 50% of high-growth companies already suggest that tech advancements are the things that are helping them rise ahead of the competition. What’s more, the research also indicates that these scale-up brands also move with more agility and urgency than many other businesses. Around 32% achieve high-growth potential in three years, and 84% get there within ten years.
What do YOU think – are you confident, cautious or scared by Brexit? Let us know in the comments section below.
