Product sourcing and bottom line are the biggest victims of Brexit

Product and service sourcing along with bottom line have suffered the most from Brexit, according to a new study

In a new survey conducted small business lender Liberis, 41 per cent asked said that the triggering of Article 50 has had a ‘negative affect’ on their business, with 54 per cent saying that they haven’t felt any effects – positive or negative – on their business. 

27 per cent of SMEs surveyed said that product and service sourcing has suffered, with bottom line also being negatively affected by the referendum results at 24 per cent.

Of over 500 SMEs surveyed, almost two thirds of t they voted to remain in the EU, with the IT, online and marketing sectors making up 77 per cent of this total – more than any other sector. Of business owners who voted to leave the EU, retail had the most at 17 per cent, with those surveyed suggesting that access to the free market might not be as important to UK retailers.

Voting inclination wasn’t just determined by industry though, as higher earning businesses with a turnover of over £1,000,000 a year voted to leave the EU more than any other, at 30 per cent. At the opposite end of the spectrum, 60 per cent of micro businesses, with a turnover of up to £50,000, voted to remain.

When asked which areas of their business have been positively affected by Brexit – including sales or leads, business relationships, bottom line, business development, product or service sourcing and hiring staff – 76 per cent said ‘none of the above’ have been positively affected, with only 12 per cent saying sales and leads have benefited.

The survey also found that 65 per cent of respondents don’t believe leaving the European Union will affect their business’ ability to hire staff.

While a lot of the Brexit talk from businesses is speculation (we’re still almost two years away from the country actually leaving the EU), the mood and sentiment has clearly been set that there will be little to cheer about as a result. A lot of it is assumption at this point, but we will have to wait and see whether the feeling is right, it’ll be a ‘self-fulfilling prophecy’ or if the majority are in for an unexpectedly positive surprise

Check Also

Feature: Why it’s time to remove local admin rights for the safety of organisations

By Andrey Pozhogin, Endpoint product manager at CyberArk.   The idea of removing local admin …