Small companies imagine Britain’s ‘model’ enhanced by Brexit
Six months after Brexit, researchers have found that nearly two-thirds of UK small and medium-sized businesses believe Brexit has strengthened the UK brand. At the same time, however, just as many business leaders said they would focus on attracting domestic customers in the coming year.
Small and medium-sized enterprises (SMEs) have been undecided about the effects of Brexit for some time. SME leaders in the UK and Ireland, less than a year before the final deal, said they had serious reservations about the performance of the countries’ economies after Brexit, while nine in ten told Vistage that economic conditions had changed in the past 12 Months.
Now, six months after the Brexit grace period expired, SMEs have told Grant Thornton that they believe Brexit could actually help them. While 60% of medium-sized companies believed that Brexit had strengthened the “Great Britain brand”, a further 70% believed that this had helped with international trade.
Andrew Howie, Head of International at Grant Thornton UK, commented, “The past year has been a period of great uncertainty for companies of all sizes … But midsize companies have proven their resilience and our research shows that despite the challenges, many see them The effects of Brexit are currently more positive than initially feared. “
Against this background, this apparent optimism could be greeted with a pinch of salt when looking at the priorities of SMEs for the coming year. Despite the seemingly improved international reputation the UK brand allegedly enjoyed and the alleged opportunities this offers SMEs to look for work overseas, only 40% said international growth is a top priority over the next 12 months, while 60% intend to double back on domestic business.
This may be due to a number of business challenges that Brexit has brought with it. 44% of respondents felt that trade compliance issues were a major impact, while another third had VAT compliance issues. At the same time, 34% told Grant Thornton that the end of free movement between the UK and the EU has brought “challenges to people’s mobility” – as the UK government tries to curb immigration.
Howie added: “Brexit will bring more changes and milestones. Organizations will continue to need careful management over the coming months to avoid further disruptions to their operations. especially when international travel increases and the current grace periods expire. “
