Our latest survey, which included 200 senior business executives in mid-sized firms, revealed that four in five UK businesses expect to experience performance and growth potential issues due to Brexit.
37% said that the UK leaving the EU will restrict their ability to do business in Europe and 35% believe it will make EU business more expensive and more complicated. 24% will be reviewing different international expansion opportunities because of Brexit.
Two of the top three barriers identified as influencing global expansion in the research were ‘domestic disadvantages post Brexit’ and ‘global political disruption’. Additionally, the majority of the executives (79%) said that their global growth would be hindered because of their suppliers not being primed due to Brexit.
There are also other political changes affecting UK businesses. Donald Trump’s presidency has seen many controversial stories in the media. Our research unveiled that 82% of UK business executives believe it is a good thing that there is a “businessman” in the Whitehouse, however 40% would prefer for it to be different entrepreneur than Trump. However, more businesses expect Trump to improve UK to US business opportunities than damage them, which shows that many UK companies are positive about the political changes on the other side of the Atlantic.
UK businesses see growth opportunities in many different countries all around the world, however compared to the number of firms doing business today, fewer see future opportunities existing in the UK, EU, South America and Africa. In contrast, however, more firms expect to do business in the USA, non-EU Europe, Canada, Asia and the Middle East than are doing so today.
Daniel Ball, director at Wax Digital: “Establishing or increasing trade abroad is of course one solution, and given the opportunities in the US in particular, businesses shouldn’t see political unrest over there as a reason not to consider it in their quest for growth.”
With 92% of businesses surveyed looking outside organic growth. Many may need to consider the political environment of where they intend to grow. 71% of businesses are positive about meeting their growth desires, whether that’s by continuing growing in the UK or overseas.
Daniel Ball, director at Wax Digital: “Mid-market firms are the lifeblood of the UK economy, and only through adaption to the global political environment can they continue to grow. Our research has found that Brexit could have a profound impact on businesses’ growth strategies – some positive, some negative – and businesses are right to see the current passing of Article 50 as an opportune time to address any issues that Brexit could bring.”