The number of business sales in the East of England producing ‘significant returns’ rose by 27 per cent rise in the year to March – the highest growth rate nationally – helped by the region’s strong technology sector and returning interest in the SME market as the economy improves.
Figures in the latest Barclays and BGF Entrepreneurs Index also point to growing start-up activity with a 4.3 per cent rise to 226,940 in the number of enterprises in the year to March 2014. But in line with national trends, the proportion of high-growth companies – which have increased turnover by 33 per cent in the last three years - remains flat, declining by 0.1 per cent in 2013.
Simon Smith, regional director, Barclays Wealth and Investment Management, East of England, said: “More than anywhere else in Britain, we have large numbers of business owners in the East of England who believe this is the right time in the lifecycle of their companies to sell shares and begin to realise the wealth they have created.
“Although we are seeing a strong performance from entrepreneurs across a number of sectors, the biggest factor behind our success is undoubtedly the strength of our technology sector. Technology is where most wealth is being created from business sales and we have more than 1,500 technology businesses in Cambridge alone.
He added “Overall, this edition of the Entrepreneurs Index paints a very encouraging picture of the entrepreneurial environment in the East of England today, showing that entrepreneurship is now truly embedded in the region’s business psyche. Now it is important that business and policy-makers in the East of England focus on supporting this segment of the business community into the next level in their business journey, allowing them to grow and unlock the potential that they hold not only for the business owners, but for the wider economy.”
Chris Hodges, investment director, BGF, adds: “The latest Entrepreneurs Index shows that there has been growth in the number of investments taking place in the region, alongside an overall increase in the number of enterprises. Having made BGF’s first investment in East Anglia in March, we are working with more and more entrepreneurs and business owners in the region with the opportunity, confidence and ambition to grow. With an improving economy there is growing sentiment amongst these business leaders that now is a good time to invest for growth.”
The survey looked at deals involving any stake sale of a target company that is publicly announced and results in individual wealth creation of at least £0.2m. High-growth companies are defined as companies revenues of £2.5 - 100m that have increased turnover by 33 per cent over the preceding three years and produced 10 per cent year-on-year growth for a minimum of two of these years.
