Two-thirds of SMEs have no Brexit plans

Two thirds of small and medium companies have not made plans to prepare for Brexit, according to a survey by CitySprint.

And 43 per cent said they have no confidence in the government’s ability to protect their businesses from the impact of Brexit.

Even so, 77 per cent are as confident or more confident about the future of their businesses, the survey, which covers more than 1,000 SME chiefs, found.

When asked what impact leaving the EU will have on their business, 19 per cent expect profit margins to decrease and 17 per cent expect revenue to drop.

Since Article 50 was triggered in March 2017 32 per cent have upped business development activity, while 27 per cent have decreased their fixed and / or variable costs and a similar number have increased investment in capital goods or technology.

Lower customer demand is seen as the biggest obstacle for SMEs in the 12 months ahead, highlighted by 30 per cent in the survey, while Brexit comes second on 28 per cent.

CitySprint chief Patrick Gallagher said: “Whatever difficulties the future holds, it’s ‘business as unusual’ for the UK’s SMEs. They have more than weathered the economic ups and downs of recent years, and by working with each other, they will no doubt continue to adapt to the times. Smaller enterprises are both highly agile and deft at reinventing themselves and the way they work to suit the times. It’s their biggest advantage.”