UK small businesses can’t succeed without retail investors, and it’s time for women to dive in, says Melissa Sturgess, chief executive of Ananda Developments.

At a time when Keir Starmer promises to build a Britain that works for everyone, and Chancellor Rachel Reeves continues the theme in her speeches, those of us working to turn small businesses into big ones face daily challenges.

We fight to attract investors, fight layers of bureaucracy, and strive to deliver innovative products that can improve everyone’s lives.

But despite these efforts, one truth remains: we need retail investors to succeed.

Those of us who have built small businesses and listed them on the London stock exchanges (whether the LSE, AIM or Aquis Stock Exchange) are born optimists. We don’t take “no” for an answer and are determined to deliver value to our shareholders. However, small caps are often overlooked, under-analyzed and dismissed. There are always risks involved; after all, great benefits don’t come without it.

But with so much capital flowing into index funds, many interesting opportunities in smaller publicly traded companies are being ignored. There is a silver lining: The current malaise has created valuation anomalies unrelated to business fundamentals: in other words, bargains.

Warren Buffet famously said that if you believe in a company, a lower stock price should be seen as a signal to buy more, not to retreat. Investors should look at smaller companies the same way.

In fact, small cap investors have an added advantage: the ability to interact directly with the company’s management and actively participate in its trajectory. This level of involvement creates not only financial returns but also a sense of personal investment in a company’s success.

So how do you learn to invest? The same way you learn to trust someone: by doing it. There are many online share trading platforms in the UK that make investing easy, safe and affordable. You don’t need thousands of pounds to get started. With just £100 you can get into the game. The key is to take that first step and experience will teach you the rest.

If we don’t start supporting small businesses, helping them grow and do vital work, who will? We cannot rely on pension funds: they lost their ability to support small businesses long ago. We also cannot count on larger funds, which seem to have lost interest in supporting entrepreneurs in the area of ​​listed companies. Support for small businesses must come from us, from individual investors determined to see Britain regain its place as a powerhouse of innovation and success.

Reforms to simplify investing in stocks are long overdue. These changes would not only benefit individual investors but would also provide growing companies with greater access to capital. Unfortunately, today’s entrepreneurial businesses face the looming threat of tax reforms (such as changes to the inheritance tax) that could have the opposite effect. Compounding their challenges, these companies are increasingly marginalized on stock trading platforms.

It’s no surprise, then, that small caps are exiting the market in significant numbers, with many considering relocating to the United States, where investors are more inclined to support growth.

And it doesn’t stop there. The next generation of unicorns will remain private for longer, allowing private equity and venture capital to capture growth and value appreciation in the early stages, leaving retail investors with fewer opportunities post-IPO.

That said, improving access to investment opportunities is only part of the challenge. Another crucial step is to encourage more women to become investors, especially in small-cap listed companies. There is a lot of talk about why women don’t invest in stocks and a common reason is lack of confidence. The solution? Start with what you know. Invest in companies that sell products or services that you use and believe in. I’m not suggesting betting your retirement money on small caps, but most of us can afford a small amount to dip our toe into the market.

As CEO of Ananda Developments, which is conducting clinical trials for a CBD-based drug to treat chemotherapy-induced pain and endometriosis, I hear from male investors all the time. I receive daily WhatsApp messages from a group of 75 male investors trading Ananda shares and they constantly ask me about endometriosis research.

However, I can count on one hand the number of female investors reaching out, even though endometriosis affects 1 in 10 women worldwide. Where are the women investors? This is a cause that should resonate deeply with them.

It’s time for all of us (men, women, and anyone who believes in innovation and growth) to start supporting small cap companies. Let’s invest, have fun and maybe even make some money. More importantly, let’s help get this country moving again. Britain has a long history of entrepreneurship and we must revive it. Supporting small businesses is how we do it.

The future of the British economy does not depend solely on government promises or speeches. It’s up to us: the investors, the entrepreneurs, and the people who believe small businesses can make a big impact.