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Research suggests fewer entrepreneurs are considering leaving the UK

25-Jul-2011

With rising taxes, many of the UK’s leading entrepreneurs were expected to leave the country, but findings from May 2011 by Investec Specialist Private Bank suggest that this is no longer the case. Research1 conducted by Investec with some of Britain’s most successful entrepreneurs reveals that only 4% are considering dropping their UK residency. In November 2010, the corresponding figure was 16%.

Similarly, in December 2009, only 71% of successful entrepreneurs interviewed by Investec said that they would definitely retain their UK residency, but by May 2011, this had jumped to 88%.

Ed Cottrell, Investec said: “Much has been written about a potential exodus of Britain’s leading entrepreneurs in the face of rising taxes, but our research suggests that there has been a significant drop in those planning to leave.

“One of the main reasons for this is that many feel that there are a number of attractive business opportunities currently in the UK. Some 54% expect the revenue of their UK businesses to increase by 10% or more over the next 12 months, and 26% anticipate that their profitability will rise dramatically during this period.”

This level of optimism helps explain why 68% of leading entrepreneurs interviewed by Investec said that over the next 12 months, they planned to raise external sources of capital for their UK businesses.

Investec Specialist Private Bank is proactively looking to lend more to its core audience of mid-sized companies who wish to raise between £5 million and £50 million to support organic or acquisitive growth strategies. The bank’s integrated finance offering means it is able to create debt structures combining revolving, amortising, senior and mezzanine lines of credit. This includes asset based lending where the bank will provide leverage against receivables, inventory, plant and machinery, property and cashflow/acquisition finance loans.

1.51 highly successful entrepreneurs took part in the research conducted by Investec Specialist Private Bank during April/May 2011. They were contacts of Investec with interests in one or more UK businesses with turnover of at least £1 million; of which 78% have a turnover of at least £10 million. The survey was conducted online and it was anonymous.