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Three in 10 SMEs believe Brexit will negatively impact business prospects

Three in 10 (30%) of small to medium-sized businesses (SMEs) think Brexit will have a negative impact on their business prospects, according to Nucleus Commercial Finance.

 

In contrast, 22% think it will benefit them.

Medium-sized businesses are more positive about the opportunities (34%), whilst sole traders are the most likely to report that they will see no impact (53%).

An estimated 69% of SMEs feel they are fully informed about what Brexit means for them.

A quarter of SMEs have already made the necessary changes to ensure their business is a success; however, 15% of those surveyed believe that while they are fully informed they do not know what measures to take next.

Furthermore, 21% did not feel informed and made no changes to their business plan in preparation for the transition period ending on 31 December.

The research found that 38% of businesses were relying on the government checklist as a way of keeping them apprised of Brexit events; however, 29% of SMEs used no resources at all.

This was particularly prevalent in sole traders where 63% said they have used no resources.

The government checklist resource was followed by the use of online advice tools (23%) and the Brexit advice service (19%).

Chirag Shah, chief executive of Nucleus Commercial Finance, said: “Now the UK has left the EU, many British businesses are facing widespread changes as they start the new year.

“This is a real challenge for those SMEs that don’t necessarily have the means and resources they need to plan effectively.

“However, there is a lot that small and medium business owners can do in the months ahead, and indeed over the next few years as we get used to a post-EU world.

“Businesses will need to put plans in place that will prepare them for the new changes they are facing and for any potential disruption this may present.

“Whether this be operational or structural changes, business owners need to consider the cost of this and ensure they have a suitable financing option in place to support them.”

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