UK small business owners shrug off Brexit concerns as almost half plan to break into European markets in 2020
- New study reveals some 80 per cent of UK small business owners are feeling 'very optimistic' about the country's economy
- Four in 10 say they are considering new markets on the continent this year
- Other European SMEs are also looking to do business in another country in 2020
- Biggest concerns are around recruitment and finding new markets
Almost half of UK small and medium enterprises are looking to expand their businesses outside of the UK this year, with a particular focus on Europe, despite concern about Britain's economy and its impending exit from the European Union.
In a new report entitled Growth Europe by corporate financial house Clearwater International, Brexit was not listed as the biggest challenge for both UK-based companies nor those in Europe.
The study, which surveyed 2,100 SMEs across Western Europe, found the biggest concerns were instead around recruitment and finding new markets, even ahead of servicing debt or accessing finance.
SMEs from the UK, Ireland, France, Germany, Italy, Spain, Portugal and Denmark participated in the study
While Brexit has monopolised headlines for more than three years and uncertainty has had a negative impact on some of the UK's FTSE 250 companies, sterling and how attractive it seems as an investment case to other countries, most SME owners across Western Europe do not consider it a significant concern.
Only 24 per cent of businesses from the countries surveyed (UK, Ireland, France, Germany, Italy, Spain, Portugal and Denmark) said Brexit was one of the biggest challenges they currently face, with a quarter also saying access to foreign markets and uncertainty caused by potential political change were a challenge.
Meanwhile in the UK itself, where 500 small businesses participated in the survey, only a third ranked Brexit as a big challenge. Furthermore, 45 per cent said they are considering new markets on the continent, with 49 per cent looking elsewhere.
More interestingly however, almost half of those (46.5 per cent) think Britain leaving the European Union will have a positive impact on their business while a quarter think it will have no impact.
This suggests most small businesses in the UK are not actually worried about the UK leaving the EU. Regionally, the Republic of Ireland is most optimistic about the impact of Brexit, with 62 per cent of respondents saying it will have a positive impact.
The biggest concerns for SMEs in 2020 are over recruitment and maintaining market position
Instead, most businesses in seven of the eight countries listed recruiting skilled staff as one of their three biggest challenges for 2020.
Maintaining market position was another major concern for firms in six of the countries while finding new customers was a concern for five.
But only 14.5 per cent of businesses are concerned about accessing financing such as overdrafts or loans. One in seven are concerned about their local economies performing poorly, and only one in 10 are worried about servicing existing debt.
David Weavers, of Clearwater International UK, said: 'A lot has been said about the supposed sluggish performance of European companies in comparison to their rivals in the US and China. But the results of our study show that there is a lot to be optimistic about in both the UK and continental Europe.
'The biggest challenges facing SMEs at the moment, such as difficulties in meeting expansionary recruitment targets, relate to things which may constrain growth, but aren’t necessarily suggestive of excessive downward pressures.
'As such, the data seems to indicate that companies are looking to the future from a position of relative strength and a desire to maintain or enhance their current market position, rather than from a position of weakness.'
Overall, the survey found that confidence in financial performance and economic outlook remains high and optimism remains a constant across European businesses.
Most watched Money videos
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Volvo's Polestar releases new innovative 4 digital rearview mirror
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- How to invest for income and growth: SAINTS' James Dow
- How to invest to beat tax raids and make more of your money
- Mini unveil an electrified version of their popular Countryman
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Blue Whale fund manager on the best of the Magnificent 7
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Metro Bank deposits lifted by high-interest savings accounts
- Haleon to close UK production site with more than 400 job...
- HSBC shocks market as boss Noel Quinn retires after...
- The Jaguar XJS is reborn as a £225k supercar - but TWR...
- Hargreaves Lansdown and St James's Place cash-in on Isa...
- Europe set for June interest rate cut as inflation...
- Shawbrook didn't transfer my cash Isa and paid just 0.1%...
- My new car is the wrong colour. Can I get compensation?...
- Elementis confident of hitting full-year targets after...
- First class decision! Royal Mail ditches £5 fines 'fake'...
- My 20-year-old granddaughter can't get her hands on money...
- The good, the bad and the ugly of the Magnificent Seven:...
- BUSINESS LIVE: FTSE 100 breaks winning streak; HSBC boss...
- HSBC boss to quit after just five years: Quinn eyes 'rest...
- Amazon booms on AI bonanza: Tech titan rakes in sales of...
- Anglo American in crisis talks with shareholders over...
- Car makers post a slump in profits amid weak demand for...
- Oil firm Deltic Energy slams 'hostile political environment'