VCT: how to support the economy of enterprises

Venture Capital Trusts (VCTs) is one of the best ways to support the business, according to research conducted by the Investment Company (AIC).
AIC fund managers interviewed 15 employees from 61 VCTs, worth 1.4 billion pounds of assets and represent 62% of the total assets of the VCT sector, and had evidence that VCTs more support to economic growth and employment in small businesses.

Research suggests that the activity VCT supports the creation of jobs, with subsidiaries experiencing, on average, an increase of 47% of employment.

Fund managers questioned reported that VCT-backed companies undertaking R & D activity is successfully developing export markets, despite their small size enterprises, with 88 participating companies revealing dedicated R & D a total of £ 55.4m.


The AIC has also reported that investment through the VCT system are convenient for the taxpayer, with poll data showing that the cost to public finances is compensated and eclipsed by the statement of income generated by subsidiaries.

Ian Sayers, AIC director general said: "This research shows that investment VCT provides substantial benefits for small businesses in the United Kingdom and the economy.

"Businesses around the country with the potential for growth capital and received input from management VCTs, which have increased their performance and more jobs. They operate in a way that in the short to medium term, and pays for itself for a long period establishing the capability for higher tax revenues. "

Sawyers said that research supported opinions fund managers' VCTs deserved support from the next government. "We urge political leaders to reaffirm their commitment to VCTs, which are the best way to support businesses and future economic growth," he said.

"New initiatives are likely to produce the substance or staying power of the network established VCT.