Thames Valley Tech sector core driver of region’s recovery
Tech and Digital Platform, ConnectTVT has partnered with research consultancy, Beauhust, to map out the most ambitious businesses in the Thames Valley and analyse the impact of Covid-19. The COVID-19 Business Impact report concludes the Thames Valley’s high growth tech sector will be a core driver of the region’s economic recovery, following London as the region with the highest number of positively impacted business.
The report showed that nearly 20% of tech businesses (19%) have been positively impacted as a result of the COVID-19 crisis with 14% citing a “surge in demand”. Just 5% said they were “critically” affected with 23% reporting a “moderate” negative impact.
Tech led sectors that enable remote working; VoIP, EdTech, eHealth and digital security, are seeing a rise in demand.
Of the 2,000 businesses surveyed, 19% have limited their physical services, with 7% having to further limit their service or product with the same figure losing a main customer group.
The report found that 22% of jobs (615,000) in the high-growth economy are immediately vulnerable. Furthermore, investment capital is on shaky ground with £18.9b of equity investment at moderate to critical risk.
“These findings are reassuring only in the short-term. Looking ahead, we know the region is heavily reliant on investment – 69% of the Thames Valley’s scale-ups have used equity funding to grow since 2011. With this lifeline under threat, businesses will need support elsewhere to be able to hold onto teams, innovation and any chance of growth.”
Louize Clarke, founder of ConnectTVT
“These firms will be integral to the UK’s productivity as we enter recovery, so it’s crucial interventions proposed by the Government reach these companies.”
Henry Whorwood, Head of Research & Consultancy for Beauhurst
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