Entrepreneurs in the UK Will Need EIS & SEIS | Films4U
Almost two-thirds of Britons want to start their own business
As a film investor, are you excited by the rise of small businesses and a population overwhelmingly in favour of self-employment? This trend could bode well for the entertainment sector and, just as importantly, our economy as a whole.
Get ready to find out why people want to work for themselves, review the economic data that supports this trend, and develop an understanding of the schemes designed to help film financiers invest their money in worthwhile and growing enterprises.
64% of workers want to be entrepreneurs in the UK
And it’s easy to see why. In this uncertain economic climate, is any job secure? Rather than waiting to find a role, instead, people are seeing the benefits of creating their own. It’s no wonder there are so many budding entrepreneurs in the UK in 2020.
However, starting a business – whether you have Branson-sized ambitions or want to start a local gardening company – requires investment. Fortunately, entrepreneurs in the UK can access the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS), both of which are government initiatives and grant sizable tax breaks to investors who work with newly-emerging and ‘higher risk’ businesses.
If you’re a film financier – or thinking of becoming one – there are two important takeaways here: (i) entrepreneurship is on the rise (ii) a range of attractive benefits exist to help investors support entrepreneurs in the UK while also making tax savings.
Entrepreneurial spirit in the UK
More than just the fact that 64% of workers aspire to become entrepreneurs, it’s also true that more people are buckling down and making good on their aspirations.
Small businesses represent the majority
There were 6 million businesses in the UK at the start of 2020. 5.94 million of these were SMEs which generated an impressive £2.3 trillion. This means that, as of the beginning of this year, small businesses made up three-fifths of the private sector and created over half (52% of its turnover).
You’ll also be surprised (and pleased) to hear that:
- From 2019-2020, the UK business population grew 1.9% (113,000)
- Small business employed a total of 61% of UK-wide employment
- Of those SMEs:
- 1.4 million employed at least one person
- 4.6 million employed nobody else
What do entrepreneurs in the UK want?
Approximately three million people in the UK dislike their job. To a certain degree, this stat explains why so many are looking to self-employment as a solution. But it’s not the whole story.
Other motivational drivers include:
- The prospect of earning more money (by working hard, you could earn more)
- The desire to work for oneself, giving way to more flexible working hours
- The appeal of working remotely, removing the need for long commutes
- Developing the right skill sets (12.6 million adults aren’t digitally skilled enough)
Why is this important for investors?
Entrepreneurship in the UK is already thriving. This means there are many opportunities out there for savvy investors seeking their next project. But there’s more to it than that. Investors have an opportunity to help the UK economy thrive by funding small businesses that might otherwise struggle to secure the money they need to get off the ground.
Yes, there is a risk attached. But the rewards – for both investor and entrepreneur – could be huge.
Fortunately, schemes exist to encourage financiers to help newly-emerging businesses enjoy the success they deserve.
If you’re not familiar with SEIS and EIS, keep reading to find out why they’re so important to film financiers and entrepreneurs in the UK.
The future of entrepreneurship in the UK
Millions of people are stuck in jobs they hate. Brexit and the recent pandemic have also had an impact on our economy. These adverse conditions have led to the demise of well-known brands and smaller boutique businesses too.
This rocky economic landscape seems hardly a suitable foundation for new businesses to build upon. But quite the opposite is true. The data shared earlier in this article proves that entrepreneurship in the UK is on the rise – with small businesses generating trillions of pounds between them each year.
As 64% of people in the UK want to strike out on their own and investors have the means to support this movement by taking advantage of the government-backed EIS and SEIS schemes. Now’s the perfect time for SMEs and financiers to collaborate and prove that no obstacle is insurmountable.
Take the next step with us
With over 100 years of experience, we’re ideally positioned to help film investors take the next step. The entertainment industry is thriving thanks, in part, to streaming services like Amazon, Netflix, and Disney+.
All our projects are EIS-eligible, and we guarantee distribution and have the knowledge and relationships to make every project we work on a success. Contact us for more information or complete our online application form.