UK tech startups confident of growth in spite of Brexit worries

Brexit flags

A new survey of 100 business leaders in early stage, UK-based technology companies finds that 73 percent are confident or very confident they will increase their turnover in the coming 12 months.

Although this is seven percent down on the previous quarter, 79 percent say they intend to hire more staff (up six percent) and 66 percent hope to raise investment (up seven percent) according to the latest Tech Tracker report from Studio Graphene.

There are worries over the effects of a no-deal Brexit, however, and 73 percent think this could be bad for their businesses.

Among other concerns the survey finds that hiring the right talent remains the biggest challenge facing tech startups in the UK. 66 percent cite this as an obstacle to growth, which is 12 percent more than in the first quarter. This is followed by securing private investment (53 percent), increasing sales (47 percent), keeping pace with competitors (27 percent) and developing new technology (21 percent).

Ritam Gandhi, founder and director of Studio Graphene, says:

While there has been a dip in confidence over the past three months, it's important to note that the vast majority of tech startups are confident they will grow in the year ahead. What's more, significant numbers are looking to take on more staff and raise investment, which is positive news for the private sector.

That said, we cannot ignore the impact Brexit is having on entrepreneurs across the country, more specifically, the threat of a no deal. Business leaders need clarity and certainty over what the future looks like -- a no deal Brexit cannot provide this. So, while cancelling Brexit seems unlikely, it's hugely important Boris Johnson and his cabinet listen to the concerns of UK tech startups, ensuring these businesses are supported and their interests are protected as much as is possible.

Photo credit: esfera / Shutterstock

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