Creating jobs and driving growth: 20 years of the Alternative Investment Market
The Business Secretary reflects on 20 years of success for the UK鈥檚 Alternative Investment Market.
The British economy growing strongly after emerging from a deep recession. A Conservative Prime Minister with a small but workable majority. And the Westminster bubble dominated by talk of Britain鈥檚 future in Europe.
Yes, June 1995 was a very different time鈥�
But during that long hot summer the London Stock Exchange changed forever with the arrival of the Alternative Investment Market (AIM).
It鈥檚 been said that while good companies meet needs, great companies create markets. Over the past 20 years more than 3,000 great companies have done just that, creating, in the AIM, a market that is the envy of the world.
And with AIM-listed companies contributing almost 拢15 billion to our economy each year, it鈥檚 no surprise that the model has been imitated by other exchanges in Europe and beyond.
But the British model will always be the original and best.
And this government will always support innovations like the AIM and the kind of entrepreneurs who make them such a success, many of whom are here with us this evening.
Over the past 20 years, well over 拢90 billion has been raised by companies listed on the AIM. That鈥檚 拢90 billion invested in the future of exciting, ambitious businesses. 拢90 billion that has allowed innovative, growing companies to reach their true potential. And most importantly, 拢90 billion that has helped create hundreds of thousands of jobs for hardworking people right across the UK.
When the AIM does well, when entrepreneurs do well, the whole country does well. And I鈥檓 proud to say that this government has a long record of helping to make that happen.
We鈥檝e changed the rules so that AIM shares can be held in ISAs, and abolished stamp duty on share purchases made on equity growth markets.
The Seed Enterprise Investment Scheme, introduced in 2012, has already supported more than 2,700 companies, helping them raise almost a quarter of a billion pounds of investment.
We鈥檝e significantly expanded the qualifying limits to attract investment through the Enterprise Investment Scheme and the Venture Capital Trust.
We supported the creation of the 拢2.5 billion Business Growth Fund, which invested more than 拢200 million in growth finance last year.
And of course we set up the British Business Bank, which is helping thousands of small, dynamic businesses unlock the finance they need in order to grow and create jobs.
That鈥檚 what we鈥檙e all about 鈥� supporting economic growth and job creation. So far we鈥檙e doing pretty well. More people are in work than at any point in British history, our economy is growing faster than any of our major rivals, and our Enterprise Bill will do even more to support British business. It鈥檚 due to be published later this year.
But it鈥檚 important to remember that the government simply creates the conditions in which private enterprise can thrive. For all the rhetoric you hear from politicians, governments don鈥檛 create jobs 鈥� businesses create jobs. Entrepreneurs create jobs. YOU create jobs.
Tonight I鈥檓 delighted to announce that the LSE Group is launching a new scheme to create high-quality apprenticeships for talented young people with the potential to excel at AIM-listed companies.
Run in partnership with the charity City Gateway, the scheme will bring together the innovative new companies that are the future of British business, and the hardworking young apprentices who are the future of the British workforce.
Because apprenticeships are not some kind of second-best option for working class kids who can鈥檛 get in to university. Apprenticeships provide young people with the opportunity to learn on-the-job while earning a proper wage. And they give employers like you the chance to train the skilled, loyal workforce you need in order to compete on the global stage.
Two million apprenticeships were created during the last Parliament. Between now and 2020 we want to see another 3 million starts. The AIM Apprenticeship scheme is exactly the kind of project that will help to make that vision a reality.
It鈥檚 a great initiative, and I鈥檇 urge everyone here to support City Gateway so it can help as many young people as possible.
We鈥檙e gathered here this evening at the home of the Honourable Artillery Company (HAC). With former HAC members ranging from Samuel Pepys to Edward Heath, I鈥檓 sure this square has seen some interesting sights over the years.
But I doubt any could compare to the spectacle on 15 September 1784, when 200,000 people turned out to watch the start of England鈥檚 first-ever manned balloon flight. After running a massive marketing campaign to attract support, an Italian named Vincenzo Lunardi took off from here and floated all the way to Ware in Hertfordshire.
His early efforts helped pave the way for other pioneers who would change the world forever. Because when innovative individuals have the right backing they can achieve incredible things. It was true in Lunardi鈥檚 day, and it鈥檚 still true more than 2 centuries later.
That鈥檚 why the AIM has been such a triumph. It brings together enterprising companies and the financial backers who can propel them on to greater things. For 20 years the AIM has fuelled innovation, driven growth and created jobs.
Congratulations to everyone who has helped make that happen 鈥� and here鈥檚 to many more years of success.