The Chancellor of the Exchequer Jeremy Hunt has delivered a Spring Budget focused on tax cuts, bringing down inflation and stimulating the UK’s flagging economy.
However, a leading entrepreneur says that there is still not enough action being taken to support businesses.
Adam Sharpe, CEO of Cardstream, a business at the forefront of payment technology, says that whilst it is right that there is a focus on extending support around energy bills for companies, much of the business support measures seem reactive, lack vision, and don’t go deep enough.
He also thinks it’s time we celebrated entrepreneurs more in the UK because it is businesses that create wealth and jobs that will help navigate the UK to prosperity.
Adam says: “I fully appreciate there’s a hangover from the pandemic. The money pumped into the economy was a huge support for millions of people on furlough. At the same time, many businesses ceased trading or fell into debt, which has contributed to this inflationary environment. Now we need a clearer vision for the future.
“Part of this must be around celebrating and rewarding businesses that are successful, instead of seeing them as cash cows. We need reform across the board and whilst Brexit was meant to turn the UK into Singapore without the sun, I’m not seeing evidence of this.”
Adam wholeheartedly supports the Chancellor’s £200m funding announced for the SMEs’ Recovery Loan Scheme, as it transitions into the Growth Guarantee Scheme. When this is built out to encompass thriving and profitable SMEs, this will provide the rounded acknowledgement and support for SMEs in general.
“Balance is everything”, says Adam. “Without creative innovation, sales and solid profits, you don’t have a thriving economy. Yet we seem to celebrate raising money in business and don’t always celebrate making sustainable profits. A healthy funding eco-system must be balanced with increased focus on product market fit and showing you can make money before raising it,” he says.
Whilst no meaningful 2024 funding data has been published yet, the trend shows that funding levels are dropping in the tech sector.
UK tech companies have seen a steep funding decline across Europe amid rising interest rates and geopolitical disruption. Total UK tech investment fell by 57% year-on-year, according to a report by investment firm Atomico.
“Inflated valuations for tech brands seem to be declining too”, says Adam. “With less capital available, there has been a recalibration of private startup valuations. Many companies have seen billions wiped from valuations when seeking fresh external funding.”
He concludes: “The call to arms is this: let’s focus as much on the privately owned businesses that are quietly thriving, making money and paying tax, as much as we do on many of the emerging businesses celebrating raising money.”
Cardstream is a multi-award-winning business that is at the forefront of Payment Gateway technology and the Payment Facilitator space, employing 80 people across the UK and globally.