Friday 27 January 2017

SME Business Planning Focus Now Shifts To The EU Free Trade Agreement



Last week’s speech by United Kingdom Prime Minister Theresa May confirming the Government’s intention to secure the greatest possible access to tariff-free trade with Europe, and also to maintain the UK’s current status as a centre for international talent, will no doubt be welcomed by small businesses looking for clarity on the terms of the UK’s Brexit deal.

However, the Federation for Small Businesses, FSB, has warned that global trade will only flourish if the agreements “prevent additional barriers, such as cost and paperwork”.

The speech comes as research reveals that the single most important factor for SME Businesses in the Chancellor’s next Budget is clarity about Brexit negotiations, with a quarter of SME businesses stating this as their top priority, above red tape, corporation tax and further investment for skills and training.

Research also reveals that the UK’s decision to leave the EU has resulted in over two in five larger SME businesses changing their funding plans. This compares to just 15 per cent of micro SMEs stating that their funding plans have changed, demonstrating how the UK’s larger SME businesses are more affected by the Brexit vote than their smaller peers.

One in five larger SMEs have said they will not borrow money until the final outcome of the referendum is clear and one in seven have stated that they will not be able to get finance from their preferred lender.
 
Meanwhile just 6 per cent of micro SMEs have decided not to borrow any money until the outcome is clear and only 4 per cent think that they will not be able to get finance from their preferred lender. Also, as a direct result of the EU referendum, one in ten larger SMEs were looking at alternative finance, compared to just one in twenty micro SMEs.

Greater uncertainty and ambiguity since the Brexit vote means that SME businesses of all sizes are now seeking increased levels of advice to try and navigate the waters of post-referendum Britain.

Over two in five financial decision makers in SMEs have sought advice about their business finances since the referendum, with the main source of advice being banks. Six in ten large SMEs have sought advice compared to just a quarter of micro SMEs.

Adrian Sainsbury, Managing Director of Close Brothers Banking Division, comments: “The ongoing negotiations over the terms under which the UK leaves the EU have had a perceptible impact on SMEs’ business and funding plans. I am hopeful that the Prime Minister’s speech will go some way to providing clarity around the exit that SME’s are looking for.

“Despite the uncertainty, it is encouraging to see that these larger SMEs have not stood still but that they have sought financial advice. But it is essential that the advice they receive is tailored to their specific needs takes each SME’s growth stage and industry into consideration. This will help SMEs to prepare for the potential outcomes of the Brexit negotiations and allow them to plan and invest in order to unlock their potential.”

London SME Businesses and other SME business have both opportunities and potential to address and over come the items related to the Brexit so they can continue serving better, more pleasant and higher level life styles for their own business customers going forwards and upwards. Plus 5.5M UK business can continue to make a positive Upwards contribution to UK Economy Growth, Progress and Development to support "Society" greater higher level positive outcomes.

To learn some more London SME business entrepreneur ideas for success visit here now:  http://bbenrichardbransonbusinessideastips.weebly.com/
To my fellow Entrepreneurs even greater and higher level business success & not just those living here in London.


Kind regards
Dwight Harrison










Entrepreneur
BBEN
The Business Building Empowerment Network
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