Budding entrepreneurs can take heart from our research into the current economic environment
The latest Smith & Williamson Enterprise Index has revealed that confidence in the economy is on the up. The index, a barometer of entrepreneurial activity, shows that the confidence felt by the UK's wealth creators at the start of the year has returned with a vengeance, following a slight dip in optimism in the second quarter.
Since the last index was recorded in April of this year, optimism concerning the economy has risen by 12.7%. An overwhelming 73% of respondents expect the UK economy to improve in the next 12 months, and the majority of the surveyed wealth creators are planning for either growth or acquisition within their businesses over the next year. This increased confidence spans a comprehensive range of sectors including services, construction and manufacturing. The overall positive sentiment of the latest index comes hot on the heels of a raft of optimistic data for the UK economy. GDP is forecast to grow by 1.2% in 2013, the UK construction sector is showing further signs of recovery and housing activity, manufacturing and car registration figures are reportedly on the rise.
Despite the obvious appetite for growth and the general belief that headcounts will increase within most of the respondents' organisations over the coming year, very few of those asked feel that the employment pool is adequately educated or trained.
A recent CBI study found that three out of five firms are struggling to recruit workers with the advanced technical skills they need, and fear that such shortages will persist for the next three years. Perhaps more emphasis should be put on up-skilling, whereby entrepreneurs take inexperienced but enthusiastic staff and then train them in their roles.
Good news for the enterprise economy
Extension to SEIS and CGT reinvestment relief What's new?
The CGT reinvestment relief for qualifying SEIS investments has been extended. If a gain is made in 2013/14 – for example, on a second home or buy-to-let property – and a qualifying SEIS investment is made in the same tax year, half of the reinvested figure is now exempt from tax. If the gain was made in 2012/13 and not reinvested until 2013/14 in a qualifying SEIS investment, the full amount is exempt from tax.
Why is this important?
The change is designed to support funding to the enterprise sector. Qualifying investments can include, for example, a start-up launched by a family member or friend and the tax relief is potentially significant.
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