The British political landscape remains uncertain, but the country continues to race towards the Brexit finish line. As a result, it is imperative that all firms are prepared; whatever the outcome. If it is a ‘Hard Brexit’; that is a Brexit without a trade deal with the EU, firms should have contingencies in place. Unfortunately, small businesses are disadvantaged by their physical size, as well as the size of their capital, and such preparations are simply not being made.
According to a survey by The Federation of Small Businesses (FSB) just 14 per cent of small firms have started plans for a hard Brexit. This could leave many small business owners in a vulnerable position next March when Britain’s exit from the EU will be set in motion.
Further results from the survey found that 41 per cent feared the impact from a no-deal Brexit but had failed to start planning for the eventuality. A smaller figure of 10 per cent thought a no-deal scenario would have a positive impact on their ability to do business. This contrasts the 48 per cent which believed the impact would be negative.
Most disconcerting is the action that small businesses have undertaken in an effort to prepare for the onslaught. According to the FSB, thirty-five per cent of small businesses are ready to postpone major business decisions or innovations, while roughly 21 per cent say they will cut staff or expenditure.
This negative reaction is largely motivated by ignorance; mainly an unawareness of what a post-Brexit landscape will look like. An easy fix would be to see residual uncertainty disperse through the government’s conciliatory talks with Brussels. These Brexit talks are not progressing well, however, so business owners have to locate some financial confidence independently.