The uncertainty about the UK’s position post-Brexit has led many investors and business owners to become more cautious, particularly since terms and deals are still yet to be agreed or confirmed.
According to research from Tech London Advocates (TLA), a network of over 4,400 tech experts, the tech sector in London has already been particularly hit by these uncertainties. The survey found that 11.9% of London’s tech sector has already lost funding from hesitant and cautious investors.
58.2% of people surveyed believe that Article 50 being triggered will cause damage to London’s position in the tech world as a global hub. 24.3% think that it would have little effect, in comparison.
33.7% of tech experts surveyed say that it has been harder to grow their business since the UK voted to leave the EU. 15.4% say that customers have been hesitant to go ahead with deals because of the uncertain position the UK is now in.
Tech London Advocates have been campaigning on the issue of international talent that is required to build the UK’s tech sector as Brexit could make this more difficult to access.
24.6% of respondents say that their business employs up to 25% of international workers. A further 22.3% say that their workforce is made up of between 25-50% of workers born overseas.
32.84% of employees are concerned with visa rules and regulations, some of whom had already experienced difficulties with this.
Founder of TLA, Russ Shaw said: “The survey data shows that many tech leaders continue to feel uneasy about the process of leaving the EU – with both investment and access to talent under threat. Tech firms must fight for an ecosystem that can provide adequate investment and offer world class talent to allow start-ups and scale ups to grow to become the tech giants of tomorrow.
“By working with government, we can help shape a Brexit that ensures London retains its position as the tech capital of Europe and an important epicentre for global tech – with high levels of investment and a world-class skills base.”
Are you worried about Brexit’s effect on the tech industry in the UK? Let us know what you think!