No-deal preparations coming at a cost for small firms – comment

“When we combine persistent uncertainty and lack of planning resource, it’s no surprise to see smaller businesses voice their concern about the no-deal deadline – yet another indication of the impact that Brexit will have on British businesses and the economy. Indeed, with the increased risk of no-deal and a weaker global economic outlook, planning for Brexit scenarios has become a challenging task for SMEs that often don’t have the budget.

“The coming month will be pivotal for the UK economy as all businesses prepare for the likelihood of a no-deal Brexit; in fact, our research found that 64% of SME leaders say the outcome of Brexit is the most important factor to their future success. Having full oversight of suppliers, customers and all other business relationships will help mitigate the potential impact and help smaller businesses prepare for any eventual outcome.

“SMEs’ concerns mirror Dun & Bradstreet’s country risk rating for the United Kingdom, which was downgraded this month from ‘low risk’ to ‘medium risk’, in part, due to the increasing risk of a ‘no-deal’ Brexit.

“While uncertainty is clouding the country’s medium- to long-term outlook, Dun & Bradstreet notes that the UK’s long-term economic potential exceeds that of many other European countries. So, while uncertainty does pose a real challenge to small business, the very same small businesses are incredibly resilient and, with good planning and supplier management, can be best placed to take advantage of a fast-moving world.”

Tim Vine, European Head of Finance Solutions, Dun & Bradstreet