Small firms not ready for no-deal Brexit

EU

Small businesses are woefully unprepared should the Government deliver a no-deal Brexit, according to a report.

The Federation of Small Businesses (FSB) surveyed 1,234 business owners, and found only 14% had contingency plans in place for the UK exiting the EU without arrangements having been agreed.

The research revealed that 41% of UK SME owners fear the impacts of a no-deal Brexit, compared to one in 10 owners who believe no deal will have a positive impact on their business.

Almost half (48%) believed a no-deal Brexit will negatively affect their ability to do business after the UK is scheduled to leave the EU on 29 March 2019.

This figure increased sharply to 66% for small businesses that trade with the EU, and to 61% for those UK SMEs with members of staff from the EU.

Mike Cherry, chairman of the FSB, said:

“Our small firms are not prepared or ready for a no-deal Brexit and the impact it will have on their businesses.

“If you sell your products to the EU, buy goods from the EU or if your business relies on staff from the EU, you now see this outcome as a threat to your business.

“The prospect of a no-deal Brexit is seeing many small firms shelving business decisions, pausing investment and thinking about cutting staff.”

“It’s understandable that some small businesses haven’t started preparing as they aren’t actually aware of what they are planning for.”

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