Commercial News

Just 1 in 5 SMEs prepared for no-deal Brexit

Rozi Jones -
|
27th September 2019
brexit 2
"The loss of finance from schemes such as the European Regional Development Fund, Jeremie Fund and Horizon 2020 will undoubtedly have an impact on growth finance availability"

Only a fifth of small British businesses exposed to Brexit have prepared for the UK leaving without a deal, according to research by the Federation of Small Businesses.

The survey of over 1,000 SMEs identifies that 40% expect to be negatively affected by a no-deal Brexit, with many hesitant to begin preparations before receiving further certainty as to what leaving the EU on the 31st of October will mean.

Jenny Tooth, CEO of the UK Business Angels Association, commented: "Disruption to small businesses is something that the UKBAA have worked tirelessly to try to minimise before we do leave the EU. The loss of finance from schemes such as the European Regional Development Fund, Jeremie Fund and Horizon 2020 will undoubtedly have an impact on growth finance availability, but preparations are by no means impossible.

"Brexit will be one of the most important events in the life of many small businesses and while it is a unique situation, experience of previous periods of turmoil will be invaluable. Angel investors can provide not only finance but vital expertise. As seasoned investors who have often navigated the far more dangerous waters of global recessions or banking crises, the advice they can offer could help SMEs make the best of this period of Brexit uncertainty."

Luke Davis, CEO of IW Capital, added: "While these figures paint a picture of doom and gloom for small businesses in the UK, what we are seeing from the businesses and investors we work with is quite different. More SMEs than ever are looking to private finance providers for growth funding, and our investor base is as confident as ever in the potential of these businesses.
"Preparing for Brexit also extends to taking advantage of opportunities and small businesses are perhaps best placed to do so. They are, by nature, nimble, adaptable and future-facing. Necessity may be the mother of all invention, but adversity is surely the catalyst of innovation."
 

Related articles
More from Commercial News