Tech start-ups bullish with 79 per cent expecting to boost turnover in coming year

Two thirds of UK technology businesses will seek investment, while 91 per cent plan to hire more staff.

Britain’s tech start-ups are overwhelmingly confident about the next 12 months, with 79 per cent expecting to increase turnover.

This is despite the government’s “awful” handling of Brexit, according to digital product designer Studio Graphene.

Ninety-one per cent of UK tech businesses plan to hire more staff, 67pc intend to expand overseas and 66pc will seek investment.

Hiring the right talent is cited as the most common challenge tech start-ups are facing, with 60pc seeing this as an issue in the year ahead. This was followed by increasing sales (58pc), securing investment (44pc) and enhancing their product or service (25pc).

The UK accounts for 11pc of the global fintech industry, employing more than 75,000 people with a forecast to surge beyond 100,000 by 2030.

Brexit turmoil

And this is despite the background of Brexit, which 53pc of tech businesses think will make growth more difficult. Interestingly, 12pc of tech start-ups think Britain leaving the EU will make life easier.

One thing all tech businesses are united on is how badly the government has handled negotiations, with 88pc describing the Prime Minister’s negotiating as either “awful” or “poor”.

Studio Graphene commissioned a survey of more than 100 UK-based technology start-ups to uncover their confidence levels and barriers to growth.

Ritam Gandhi, founder and director of Studio Graphene, said: “The UK’s tech start-ups are among the very best in the world, but this isn’t something we should take for granted.

“Our quarterly UK Tech Tracker Survey shows that even Brexit chaos cannot derail the optimism of tech entrepreneurs in this country, which is to be celebrated. But it also illustrates that raising investment and hiring talent are key concerns among tech firms. That’s why it’s vital both the government and private sector work together to ensure these obstacles are addressed and, ultimately, that Britain’s exciting early stage businesses get the support they need.”

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