By Max Clarke
Following the recent VAT rise to 20%, research by Investec Specialist Private Bank reveals that 39% of some of Britain’s most successful entrepreneurs are concerned, and 6% are very concerned, about the impact this will have on the UK economy.
Similarly, 36% are concerned about the impact this will have on their own UK businesses, with 6% being very concerned about this.
In addition to this, rising inflation is also having a detrimental impact on some of the businesses of leading entrepreneurs, with 59% claiming that they have had to make changes to their UK businesses as a result of this. Some 3% claim that this was instrumental in them having to close businesses, and 25% said that they have reduced the number of people they employ because of growing inflationary pressures.
Ed Cottrell, Investec Specialist Private Bank said: “Despite some entrepreneurs having concerns about the impact that 20% VAT will have on the economy and their businesses, many are feeling more optimistic about their prospects this year when compared to 2010, and the vast majority are expecting to see a rise in their cashflow and revenue.
“We are looking to play an active role in partnering many of them in growing their businesses and taking advantage of the opportunities they see.”
Investec works with successful entrepreneurs, management teams and private equity houses to provide finance of typically between £5 million and £30 million to UK mid-market enterprise.