Brexit seems scary. But why, when nothing has been agreed? Regulatory uncertainty is always going to be a dampener on business spirits, as are concerns about access to the single market, and the people that travel here to work and fill crucial roles.
If these things are up in the air, being nervous as a small business owner is understandable.
Two new pieces of research illustrate that fact, while showing that some small businesses are taking a “carry on and keep working” attitude – unlike some of their bigger peers.
In the City of London, Morgan McKinley Financial Services’ research finds a large tranche freezing their recruitment and the number of financial services professionals looking to switch also dampened.
However, LMA Recruitment’s Nefino Joannides tells Recruiter that smaller firms in the City are getting on with things – particularly as the Brexit timetable will be measured in years rather than months. “If anything, this year they are a hell of a lot more relaxed about things and Brexit, and have taken the attitude that this is going to comfortably take a couple of years,” he says.
But head north several hundred miles, and Scottish SMEs cite Brexit as a key concern, with the potential second Scottish independence referendum amplifying their concerns, according to a survey by accountants Johnston Carmichael. With this in mind, it’s understandable that concerns loom around the exchange rate and access to the single market, alongside many worried the size of the marketplace they operate in could stifle growth.
Despite those twin, associated threats, 69% plan to grow organically in the short to medium term. It would seem this is a more “steady as she goes” attitude rather than outright world domination, as 65% say that their growth plans will be paid for from cash generated in the business.
Some are willing to venture forth – with 12% seeking bank debt to fund growth, while 10% will consider private equity. Some 13% plan to sell their business in the near future.
Ploughing through the uncertainty is an admirable trait, but the uncertainty that hangs over the business world doesn’t mean that planning is pointless. Johnston Carmichael corporate finance partner Andrew Ewing says that, as always, SMEs need to be proactive rather than reactive. “Through planning ahead whether for sale, fundraising or acquisitions you can remove some of the uncertainty,” he says. It’s “essential to seek advice”.
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