After Dr Pippa Malmgren, advisor to the Department of International Trade and former White House official under President George W Bush, spoke of Foreign Direct Investment into the UK rising despite scaremongering from Project Fear, Luke Davis, CEO, and Founder of Mayfair-based investment house IW Capital has responded with what this will mean for SMEs after Brexit.
Luke Davis, IW Capital
Luke Davis is of the opinion that:
FDI can often be seen by economists as the holy grail for investment, and of course, FDI has some great benefits to both parties at either end of the investment. However, as 99% of the UK’s businesses are SMEs, we need to look at investments into these in greater detail, particularly with something as potentially disruptive as Brexit on the horizon. Many are not large enough to attract FDI, but still need investment to scale up, be competitive and supply to work to millions of people across the country.
The investment schemes that are available across the country, such as the Enterprise Investment Scheme, are a great way to invest into UK SMEs, especially into those who are looking to scale up, support the local economy and jobs while maintaining Britain’s leading role in the entrepreneurial economy and making tax-efficient investments.
Brexit will be a challenge for some SMEs, but of those that I speak to, many are excited about the challenge and are looking outward for the opportunities, rather than looking internally and attempting to weather the storm.