SME Optimism Amid Brexit Uncertainty

While the Chancellor recently stated it was ‘definitely the case that the Brexit impasse had impacted the economy as businesses hold back from spending’, new data shows that nearly 40% of small businesses are planning for growth this year...

According to research commissioned by Purbeck Insurance Services and carried out in March 2019, SME optimism is still relatively high, with 38% of businesses planning for growth this year. In particular it appears that the Sales and Marketing sector is the most optimistic, with 56% of respondents planning for growth.

Other sectors high on the list of planning for growth include SMEs in Travel and Transport (46.70%), Finance (43.20%) and IT & Telcoms (42.30%).

“There are some 5.6 million SMEs in the UK¹, and they are often referred to as the backbone of the British economy,” said Todd Davison, Director at Purbeck. “It is therefore reassuring so many of these enterprises are optimistic and are looking to grow despite the Brexit uncertainty. Furthermore, nearly half of the SMEs surveyed are looking at keeping the business on an even keel.”

The Purbeck research also reveals that some regions are more optimistic than others. Nearly half of SMEs in the South West top the chart for growth plans, followed by Yorkshire and the Humber and the East of England at 42%. It seems that SMEs in the East Midlands are the least ambitious with just 30% planning for growth.