Innovation Could Suffer The Most At The Hands Of Brexit

22nd January 2018.

Innovation is an important factor in the process of building, and succeeding, at a business. To put it simply, if you don’t adapt to new technology you will struggle to compete with other economies. However, the results of the 2016 referendum and the subsequent decision to leave the EU, may now change the game for businesses across the country. According to new research, SMEs who invest in the most advanced technology may be hit hardest by Brexit. Nonetheless, we encourage our members at the Credit Protection Association not to allow that to slow the growth of your company, but instead to kickstart preparations for the worst case scenarios of Brexit.

According to a new study by the University of St Andrews, SMEs who are focussed on emerging technologies and exports could suffer most from Brexit-related concerns.

The study notes that the UK’S decision to leave the EU is likely to result in lower levels of capital investment, reduced access to external finance, weaker levels of growth, a slowdown in product development and lower levels of business internationalisation.

The research draws upon detailed analysis of the UK government’s Longitudinal Small Business Survey, one of the largest attitudinal surveys of SMEs undertaken in the UK, encompassing some 10,000 firms.

Dr Ross Brown from the Centre for Responsible Banking and Finance at Fife university is concerned for the negative impact from Brexit, particularly the perceived damage to entrepreneurs and those viewed as the high growth ‘superstars’ of tomorrow.

“In other words, SMEs thought to be the most significant for boosting productivity and economic growth may be the most negatively affected by Brexit”, he warned.

Across the UK, there are some 5.5 million SMEs which together account for more than 99 percent of businesses and 60 percent of total private sector employment.

Pushing the economy and our businesses forward is vital if we are to grow as a nation. While Brexit is a threat to many aspects of British culture, it is not an excuse to lie down and accept surrender. Here at the Credit Protection Association, we encourage our members to fight every day; fight for their money, fight for their business and fight for their right to compete. If businesses in the UK believe innovation is too risky, we will fall behind the other braver economies. CPA will prepare its employees and its members for what Brexit will throw, and at this point, it’s all you can do. Ensure your employees and your customers understand you have planned ahead for the changes in trade, and ensure your cash flow can survive any dips in demand. Come to us for help with your cash flow and any other advice!

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