Home Business NewsBusinessBusiness Growth Company investment in hiring surge in the south east and London

Company investment in hiring surge in the south east and London

16th Aug 21 10:32 am

Despite the wide-scale disruption of the last 18 months, recent research has shown a substantial increase in company investment for hiring purposes, particularly in the south east of England.

Playter Pay’s analysis of 12,708 companies in the last 24 months by industry, region and intended use of funds comparing the figures of July 2020 – July 2021 with the same period 2019-20, found that the UK experienced a 50 percent increase in investment gained in 12 months – an uptick of £7.1billion.

And it is the drive for job creation that is feeding demand for investment, despite the widespread closures of businesses. The companies raising funds for investment had an average turnover of £22.2m and an average of 27 employees.

Total business fundraising

Total business fundraising in the last 12 months is £21b, from £13.9b in 2019-20 and the average fundraise from £2.19m to £3.56m. The number of companies planning to use the investment for such purposes is up by 24 percent. The investment for hiring purposes totalled some £1.68bn of investment, 8 percent of total funds raised.

In the south east, investment raised for hiring increased by an astonishing 83 percent, while in London the figure grew by 29 percent.

The trend has been noted in a wide range of sectors, with companies classified as technology up from 60.8 percent to 69 percent, and Leisure and Entertainment up 7.4 percent from 5.6 percent.

Retail business surprise

While industrials have seen a fall 26.9 percent down to 21 percent of companies raising money to hire, what may come as a surprise is that retail businesses raising funds to hire comprise 10 percent in the last 12 months compared to 8 percent in the previous year.

Of those companies raising money in the last 12 months with the intention of jobs creation, 35.5 percent were at seed stage, 48 percent venture, 10.5 percent growth and 6 percent established.

No doubt about it, Covid-19 has had a massive impact on employment in the UK, with 4.8 percent of the population unemployed in May 2021. The business community has risen to the occasion by seeking investment to fund jobs creation, and it’s vitally important that they receive the support that they need if we are to “build back better”.

Seed funding is crucial, but so is investment in growth, venture and established organisations.

The much needed pandemic recovery will be hampered without flexible funding infrastructure. Businesses need new talent not just to scale and diversify, but to re-establish after the disruptions of the past 18 months, and investors will be able to make a real difference in the UK’s economic recovery

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