Monday September 28, 2020

UK SMEs and their 2020 goals despite Brexit uncertainty

Mar 13, 2020
3 min read
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UK SMEs and their 2020 goals despite Brexit uncertainty

UK SMEs and their 2020 goals despite Brexit uncertainty


Brexit has been the single biggest issue in Britain for the last couple of years. The incessant debates, political gridlock, and uncertainty were an undeniable drag on business and the economy. Change is never easy, so Britain exiting the European Union was never going to be a walk in the park.

The political gridlock had virtually come to an end after the December 2019 elections, in which the Conservatives won a commanding majority. Their electoral promise to "Get Brexit Done" resonated well and provided finality to the issue.

Without Brexit hanging over their heads, businesses are more optimistic and confident about their future. A survey of 500 SMEs by VistaPrint, found that 86% of business owners were satisfied they would achieve their main goal in 2020. The top of the list of those goals was substantially increasing revenue and growth, reaching new customers, and generating repeat business. The survey also revealed some apprehension about the future, as:

 

  • A third of companies are yet to break even.
  • 52% predict political changes will have an impact on business.
  • 38% believe they will struggle because of bills and expenses increasing.

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Despite the negative sentiments surrounding a global slowdown and Brexit concerns, small businesses in Britain are charging forward. According to a survey by Clear Water International:

 

  • 86% of British firms will seek fresh investments in 2020 for growth.
  • 44% of new finance will be found from existing investors, 44% will be from cash surpluses, and 40% will seek fresh capital from an asset or working capital financing.
  • After getting over Brexit, 78% expressed concern over the US-CHINA trade war.

Another study supported the above sentiment and revealed that:

  • Investments by SMEs is expected to be £1.7 billion with a third of that going to the North and Midlands regions
  • 27% (about 1.6 million) of SMEs plan to move premises after Brexit. 18% plan to upgrade and refurbish their existing premises and 12% are expected to buy new buildings while 7% build their property.
  • 23% plan to expand their workforce over the next two years.

Business owners always operate with a certain level of risk, so while some believe that Brexit could be a hindrance, everyone agrees that gridlock is even worse. With clarity on the way forward, businesses now have the chance to plan and strategize on their future.

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