Wealth managers should focus on an emerging sector of well-off and socially-minded digital entrepreneurs who are plugged in to making and managing money.
Britain’s technology sector is generating thousands of successful digital entrepreneurs who will reshape the nation’s wealth landscape, says market research firm Ledbury.
A report from the firm highlights a potentially attractive group to wealth managers, and they are entrepreneurs aged under 45 running successful online businesses such as etailing, software development and game creation.
Valentina Lorenzon, a researcher at Ledbury, said: “Digital entrepreneurs are an increasingly important part of the business and wealth landscape in the UK, and the recession has prompted many individuals to set-up businesses in this area.
“From a wealth management perspective, these entrepreneurs are an exciting next generation segment, with a number of features that set them apart from other entrepreneurs.”
The report highlights that the UK’s technology sector offers the best business environment in the world, while many other areas of the economy remain challenging for start-ups.
Ledbury also say that digital entrepreneurs are not driven by the need to make money like other entrepreneurs, though they are just as financially successful. Instead, they are driven by a desire to make the world a better place with their products.
This higher degree of social awareness extends to their willingness to accept mentorship and share their knowledge with others, particularly with other start-ups and smaller businesses.
In addition, they tend to have a more responsible attitude towards paying their taxes and are less inclined to mitigate their tax bills.
Those with particularly successful digital enterprises are notable for their ability to adapt to a continuously changing environment while keeping up with the changes in technology.
Indeed, many say they make an effort to keep themselves informed of changes and advancements in their field on a daily basis.
Wealth managers wanting to meet successful digital entrepreneurs should aim their efforts at well-chosen events, since many of these business people enjoy networking events in which they meet fellow entrepreneurs to discuss their experiences.
Ledbury says that these same events are also the opportunity to bring potential investors together with a digital business looking for investment to help develop their company.
However, the report points out that a wealth manager needs a deep knowledge of the sector, but their efforts at maintain a technological edge will bring new clients who will generate more new clients in turn through referrals.
That’s because those entrepreneurs who find themselves well taken care of by a wealth manager are keen to introduce friends and peers as a potential new clients.