Barclays research shows businesses in the sector set to grow four times faster than GDP
Leaders of British tech firms are predicting industry-wide growth of 11% for 2015, with even stronger results predicted for 2016, according to a report by Barclays’ Technology, Media and Telecoms division.
If correct, the predictions would see UK tech firms grow around for times faster than GDP (forecast at 2.6% for 2015). When asked about 2016, confidence was even greater. On average businesses expected to see their growth hit 15% across that period.
When asked to look at the factors that had stimulated growth in 2014, those that had seen the most expansion (>20% growth) mostly cited strong leadership. As many as 93% quoted this as the main driver. This was followed by investment in new technology (84%) and speed of decision-making (80%).
When looking at the biggest challenges facing their business in 2015, increased completion (29%) and the ability to attract and retain staff (25%) came out on top.
Sean Duffy, Managing Director and Head of Barclays’ Technology, Media and Telecoms team, agreed that strong leadership is an important factor for growth, adding that it is “particularly important in the first few years of a business’ life”.
“It’s also even more relevant for fast growth businesses, which experience unique stressors and demands on their cash flow, requiring their leaders to make many major decisions at speed in order to keep pace,” he continued. “It takes an extremely strong and dynamic individual to have a clear vision and the energy to lead their workforce to success in this type of supercharged environment.”