The BVCA has launched their second report measuring the contribution of private equity and venture capital to the UK economy. When they published the first edition of their independent study last year, it was clear from the findings that private equity (PE) and venture capital (VC) are of immense value to the UK economy. By supporting 1.9 million jobs, private capital was shown to provide a financial and strategic backbone to British businesses of all sizes and in every corner of the country.
This year’s report reinforces this: PE and VC are backing more jobs than ever – 2.2 million, to be precise, a 13% increase on their previous analysis. Over half of these are outside London and the South East of England, demonstrating what a crucial partner private capital is to businesses everywhere. This equates to around 7% of all jobs in the country. An additional 1.3 million jobs are indirectly supported by suppliers to PE and VC backed firms, which demonstrates the broader value of private capital to the UK economy. The new analysis also found that 85% of businesses backed by venture capital have less than 50 employees and private equity invests in businesses of all sizes.
Since the BVCA launched the first economic contribution report, the research also found that private equity and venture capital backed businesses directly generate £137 billion of GDP in 2023. This is a 34% increase on the previous 2021 study, and equivalent to 6% of the UK’s total GDP. The report found that when their suppliers and the related consumer were taken into account, this figure increases to £286 billion of GDP, or over 11% of UK GDP.
This year the report also provides greater detail on employment by sector. The data shows that the wholesale and retail trade remain the largest employer amongst private capital backed businesses whilst the information and communication sector, along with finance and insurance, has seen impressive growth in employment since the last analysis.
You can find the report at the link below.
SOURCE | BVCA Report