30% of Brits look to EIS as interest rates hit record low
Consumers and investors aged 18 to 34 (38%) and those in London (45%) most likely to show interest in EIS
As the Bank of England cuts interest rates from 0.5% to a record low of 0.25%, research from IW Capital has revealed a growing interest in the Enterprise Investment Scheme (EIS) in the financial strategy of UK residents.
The survey of 2,000 consumers and investors found that 30% of Brits – equating to 15.4 million people – would consider investing through the scheme over the coming 12 months, while 27% would not.
This figure was higher amongst respondents aged 18 to 34, with 38% showing an interest in EIS, while Londoners (45%) were the most likely to by region, followed by those in the North East and South East (both 30%).
However, 43% of those surveyed admitted to not feeling informed enough about the scheme, with those in Scotland (49%), the West Midlands (49%) and Wales having the greatest lack of awareness about it.
More than £14bn has been invested through EIS since its launch in 1993, with the number of investments made into small businesses through the scheme growing by 11% in 2014 to 2015.
Luke Davis, CEO of IW Capital, commented: “Following closely after Britain’s vote to leave the EU, the Bank of England’s decision to cut interest rates to record lows has had an inevitable ripple-effect impacting people in every corner of the UK.
“This period of political and economic change makes it extremely important for savers and investors alike to evaluate the effectiveness of their financial strategy for the months and years ahead.
“But the research has also uncovered a pressing issue that must be addressed. For EIS to unlock the full potential of Britain’s entire pool of private investors, greater awareness and education is required.