OWNERS of UK tech businesses expect their firms to deliver double-digit growth in 2015, according to a survey by Barclays.
CEOs and owners of UK tech businesses are predicting 11% average growth over the course of the year, despite UK GDP being forecast at 2.5%.
More than half (58%) expect to grow by up to 10%, while a fifth (18%) expect growth between 10% and 20%. One in six (16%) expect growth to top 20%.
“These remarkable growth predictions reveal the optimism and drive of the UK’s world-leading tech sector,” said Sean Duffy, MD and head of Barclays’ technology, media and telecoms team.
“The fact that many firms are expecting further growth in 2016 shows that this trend isn’t transient and the UK is a real launch pad for innovative tech businesses.
“Investors are seeing the UK as an international talent magnet and a platform to grow or launch their business for a number of compelling reasons, including the culture, light-touch regulation, supportive government policies and access to finance.”
Leaders drive fast growth
When questioned about how they would grow to their predicted level, there were differences between those expecting less than 10% growth, compared to those expecting 20%+ growth.
Nine in ten expecting large growth cited strong leadership as a catalyst for its growth in 2014, compared to seven in ten for lower growth firms. More than 80% of large growth predictors said investment in technology had facilitated growth in the last year, compared to 67% in those expecting lower growth.
Four-fifths (80%) of those expecting large growth said speed of decision-making was important in driving growth, compared to only 54% of those less optimistic about growth prospects.
“Strong leadership rang out loud and clear as being critical for growth, and this is particularly important in the first few years of a business’ life,” said Duffy. “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.”
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