According to a recent study, Britons are turning to alternative finance, specifically SME investment through EIS, which offers an attractive suite of tax-related benefits for an investor.
This is great news for the UK’s collection of 5.4 million SMEs; with more than £14 billion invested through EIS since it was launched in 1993, this scheme has become a vital part of the SME finance landscape and our study shows that the future of this initiative is bright
The findings are encouraging, demonstrating the health of the initiative and confidence in SME progression at a time of transition for the UK – this is supported by research carried out by IW Capital earlier this year which found that 57% of UK investors feel con dent in SMEs as being drivers of private sector growth and productivity. Moreover, among the 18-34 year olds surveyed, the percentage of people looking to invest through EIS in the next 12 months rises to 38% – boding well for the future of the scheme, with the next generation of UK private investors keen to back British small businesses via EIS.
Additionally, 45% of adults in London said they would consider using the scheme in the next year. Conversely, 43% of respondents indicated they do not feel informed enough about EIS showing there is still much work necessary to communicate the significant benefits of investing in EIS companies.
In particular, the widespread lack of awareness of EIS was elevated in Scotland (49%), the West Midlands (49%) and Wales (48%).
The complete report is available here.