NEWS
EUROPE STILL BIG TARGET FOR UK BUSINESSES
LONDON CENTRIC, SAY UK SMEs Over half of UK SMEs believe that government investment is unevenly spread in favour of London, according to new research
INDUSTRIAL STRATEGY IS TOO
OVER TWO THIRDS of UK businesses will expand internationally in the next three years, according to a survey of 500 key decision makers with 82% considering Europe to be the most strategically important region to expand into. This is despite the fact that 49% have
already felt the negative impact of Brexit on their business, according to the survey by Elements Global Services. When businesses were asked about their top three biggest Brexit concerns, the most popular responses were ensuring trade with EU countries (56%), followed by a negative impact on the economy and consumer demand (36%), and the declining value of the pound (29%). Only 29% said that Brexit would have a positive impact on their business in a year’s time. Rick Hammell, CEO of Elements Global
Services said: “Thankfully, Brexit hasn’t dampened spirits for global expansion. UK businesses are seemingly still ambitious for global expansion despite geopolitical uncertainty – most want to go to Europe, followed by North America and the Middle East. Expanding your business abroad gives you the chance to explore new markets, beat your competitors and hire brilliant new people. And right now, at least, there’s no reason to believe that Brexit should halt those ambitions. “It seems ironic that most UK businesses
are worried about navigating uncertain political climates if they expanded their business abroad, Considering how uncertain Brexit is. I would go as far as saying that British businesses that are thriving despite Brexit uncertainty would probably be better at navigating this than they give themselves credit for.”
6 SME
THE FINDINGS SUGGEST UK SMEs expect more from the government’s industrial strategy beyond London, as awareness of the Northern Powerhouse grew by 13% to over two thirds (70%) of SMEs. However, there remains work to be done to champion the Midlands Engine, where over half (54%) of SMEs are unaware of the initiative, despite renewed efforts by the government to champion the region. The survey carried out by Bibby
Financial Services on its latest SME Confidence Tracker highlighted that over a third of SMEs (36%) believe the Northern Powerhouse is too focused on Manchester and should look to develop other cities in the North, down from 40% in 2017. A similar situation exists in the Midlands, where nearly a third (28%) of SMEs believe the Midlands Engine is too focused on Birmingham and should be focusing on developing other cities in the region, down from 33% in 2017. When asked what they thought
about the Northern Powerhouse, nearly a third (29%) of SMEs see it as an investment gimmick that is politically motivated. Just under a quarter (24%) believe the same of the
Midlands Engine. Edward Winterton, UK CEO,
Bibby Financial Services, said: “After decades of under-investment in the UK regions, a patchwork approach to investment is not delivering on the government’s promise of a fairer economy. SMEs need better support to re-set the balance between the regions and provide business owners with the confidence to invest and grow. “SMEs are doing their upmost to
get on with things amidst Brexit uncertainty. It is about time the government did the same. Brexit must stop being a distraction from a domestic agenda that needs to deliver for businesses and the people they employ. For starters, roads need to be built, internet speeds improved, and train lines electrified. “At the start of the year we saw a
Brexit-bounce in confidence as SMEs saw signs of progress and tangible outcomes from the negotiations. Since then, developments on the Brexit front seem to be as dry as the UK’s weather. Lack of movement and squabbling within government means that SME confidence will continue to waiver.”
www.smeweb.com
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