Entrepreneurs Embracing Technology
Posted on 23rd June 2014
According to recent research, UK entrepreneurs are rushing to embrace technological advances, with half of those polled anticipating spending over 25 per cent of their total business investment on technology assets.
Meanwhile, one in four entrepreneurs said they would prioritise investment in technology or digital assets over headcount or other infrastructure, with half saying they planned on spending up to half their total investment on technology, although 25 per cent said their spending on such assets could reach as high as 70 per cent in the next year.
Three quarters of the entrepreneurs polled said their spend on technology assets was a higher proportion of their business investment than this time last year, highlighting the importance of the fast-paced digital revolution to driving growth.
However, despite growing confidence in the economic recovery and their own confidence in their ability, almost 80 per cent of those polled said that fear of failure, or a risk averse attitude, is holding them back and nearly 60 per cent agreed that they would be more likely to sell their business for £10m and take the money and run rather than holding out for £10bn. This illustrates that early exits could be holding back the success of entrepreneurship.
The majority of those polled suggested that the Government could be partly to blame for this attitude and that the private sector should support tech clusters more than they do.
According to the research, this would be more effective than the creation of a dedicated state-backed technology bank, which would offer funding options including direct investment in companies, loans and fund investment.