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SMEs ‘represent a rich vein of UK potential’ in current economic climate

The UK’s small businesses have been given a boost in support after new research says investors could lose out if they ignore small companies.

In a report released by FundExpert, investors have been urged to turn to the small business sector as they could prove a beacon of hope for the future of the UK’s economy.

Brian Dennehy of FundExpert says that the UK’s SMEs ‘represent a rich vein of UK potential in this time of economic gloom.’

The report found that after a growth of 22.6 per cent, the smaller companies sector was the most profitable of the Investment Managers Association in 2012, showing promise on the horizon for the small business sector.

Mr Dennehy added: ‘While easy money was made in 2012, the key to investment returns in 2013 will be finding the exciting British businesses that are growing profits despite the economic backdrop, and identifying the funds that invest in them.’

The sector has been given a further boost by recent good news from the economic sector according to Mike Prentis of BlackRock Small Companies Trust, ‘In the past, UK smaller companies have tended to do well coming of recession and going into periods of growth.’

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