The tech sector outperformed the rest of the UK economy in 2014 as the number of new entrants to the market hit a seven year high, research from KPMG has shown.
KPMG’s Tech Monitor UK report also revealed an increase in tech sector recruitment in 2014 fuelled by “sustained profitability”.
Additionally the advisory firm found that the number of tech startups in the UK had risen by 40% year-on-year.
Encouragingly 82% of tech sector startups in 2014 managed to survive their first year- well above the all sector average of 76%.
Tudar Aw, KPMG’s head of technology, said:
“The survey results echo my personal view that the UK tech startup scene is vibrant and far outstripping other sectors.
“For those naysayers, it also shows that they have a higher survival rate than the UK average for all startups.”
West Coast rival
Should the sector continue on its upward curve Aw said there was no reason that it could not rival Silicon Valley.
He said:
“I sense momentum is building and that it is only a matter of time when we begin to rival the West Coast.
“In the run-up to the general election, the message from the latest Tech Monitor UK survey is clear; the tech sector remains a star performer of the economic recovery, and the future looks resoundingly bright in terms of industry growth and job creation.”