New research from equity crowdfunding platform Seedrs shows three times as many people believe London will remain a key business destination post-Brexit as those who feel its reputation will suffer.
Fifty-two percent of customers believed London will retain its position as a global innovation center, while only 16 percent believe it will suffer. The remainder, 32 percent, did not know.
Respondents were asked which sectors should see the strongest growth opportunities over the next year. They said professional services (29 percent), manufacturing (21), financial services (20), IT and telecoms (20), hospitality and leisure (17) and property (16).
Entrepreneurs’ biggest concerns after Brexit are regulatory uncertainty (41 percent), loss of European trade (41), low growth levels (35), loss of direct foreign investment (33), rising unemployment (27) and lack of business finance access (15).
“We haven’t seen any slowdown in investment activity since the referendum, and we believe strongly that the UK remains highly attractive for inward investment,” Seedrs cofounder and CEO Jeff Lynn said. “Our research supports the view that London will continue to be one of the top destinations for entrepreneurs looking to set up a business. It also shows that equity crowdfunding is still a great source of capital for entrepreneurs looking for first, second, or even third round finance.”
The future climate will be influenced by how the United Kingdom negotiates its exit, Panmure Gordon chief economist Simon French said.
“We believe that a negotiated ‘soft Brexit’ rather than a ‘hard Brexit’ will enable the UK to remain dynamic and stay ahead in the global race for talent. The UK can use Brexit as an opportunity to broaden its horizons beyond Europe and reject the ideas of protectionism.”
Small business also has opportunity, early-stage business investor Julian Sutton said.
“Even if there is an economic downturn post-Brexit, businesses that launch during a perceived higher risk climate can often result in better quality businesses due to the challenges they have had to manage through.”