A report recently released by KPMG showed how well the tech sector and start-up tech companies are still doing, despite fears of a slow down towards the end of last year.
The Q3 2014 survey showed that, while business remained strong in the sector, the rate of growth had slowed. However, the KPMG/Markit Tech Monitor UK Survey for Q4 reported that:
- Tech sector employment growth accelerated in the last quarter of 2014 and had now delivered 5 years of sustained job creation
- The number of tech start-ups rose to a 7-year high in 2014, estimated to have grown at 40% year-on-year
- Whilst the average survival rate for UK start-ups in general has improved in recent years, tech start-ups have outperformed the national average with a survival rate of 82%, compared to the the UK-wide figure of 76%
- The quarter showed the widest gap between tech sector performance and the rest of the economy for nearly 6 years
- Tech sector profitability in the quarter was the second highest since Q4 of 2007
- More than half of the survey respondents expect a rise in business activity in the next 12 months
The report said that the performance was fuelled by new business, the success of new products and low cost inflation.
Great news for tech companies, start-ups, freelance IT professionals and the UK economy in general.