A survey of companies that have been funded by venture capital trusts (VCTs) has found that they have created 14,000 new jobs since receiving the investment.
The Association of Investment Companies (AIC) heard from 271 such businesses, which reported that their combined workforces have swelled from 23,643 at the time of the VCT injection to 37,775 in the last financial year.
‘VCTs are bridging the finance gap and supporting job creation and innovation in what remains a challenging economic environment,’ commented Ian Sayers, the AIC’s director general. ‘The combination of investment and business experience offered by VCTs provides real and sustainable benefits to the wider UK economy.’
The principal winners from the VCT investments have been London, which has gained 4,102 new jobs, and the technology sector, where 3,126 new positions have been produced. But many other industries and regions have benefitted too: the North West, the Midlands and East Anglia, the South East, the South West, and Scotland have all seen over a thousand new jobs generated; and employment in each of leisure and hospitality, business services, and healthcare has increased by more than 2,000.
The financing provided by VCTs has come at a time when many smaller businesses have struggled to obtain financing from traditional sources, such as banks.
Chosen excerpts by Job Market Monitor
via Research reveals VCT investments create thousands of jobs.
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