London, 28th September 2018 – With just six months to go until March 29th 2019, companies across the UK and Europe are at risk of a major productivity hit, with lack of clarity holding back two-thirds of businesses from starting important Brexit preparations.
The research, commissioned by Sage and conducted by YouGov reveals the lack of information around the impact of the UK’s exit from the European Union (EU) has delayed businesses from taking the necessary steps to maintain trading post-Brexit. The findings also show that the majority of businesses across the UK are still yet to start the process.
The survey[1] reports that 57% of those based in the UK say they will need to adapt their business processes as a result of the UK’s exit from the EU. Two-thirds of firms have yet to implement the changes to processes required - losing valuable time navigating uncertainty that could otherwise be dedicated to growth.
In the UK, 43% of businesses surveyed believe they will not need to adapt any processes, compared to 52% in Europe. Whilst choosing not to adapt processes ahead of Brexit comes with significant risk, many businesses cite lack of information and clarity as important factors currently posing major challenges to decision making.
Amongst the businesses surveyed, a third are unsure of how long they will need to prepare for Brexit, with the average UK business citing up to 15 months. Lack of action is primarily attributed to a lack of assurance, with 45% of all UK companies surveyed reporting a hit to business confidence as the biggest impact of Brexit. Amongst businesses that trade in Europe, this figure jumps to 53%. Overall, this anxiety is more prevalent amongst larger businesses, with 27% of UK start-ups claiming to feel less exposed to the effects of Brexit.
Sabby Gill, Managing Director UK and Ireland, Sage said:
“Our research clearly shows that this current lack of both certainty and clarity is leading to a delayed investment in better equipping UK businesses to operate post Brexit. Most alarmingly, the data shows that the time these businesses will need to implement the changes necessary, will significantly exceed the no-deal deadline date.
“Businesses of all sizes are crying out for clarity and politicians need to prioritise providing guidance and support to help business continue to export and trade post-Brexit - whatever the scenario.
“Earlier this year, Sage found that Small & Medium-sized businesses already spend an average of 120 working-days per year on administrative tasks and we cannot risk placing additional pressure on the productivity crisis. The UK government has an important role to play in paving the way for continued growth throughout this transitional period, helping British businesses make considered decisions and securing a competitive future economy.”
Additional findings:
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Methodology: Sponsored by Sage and conducted in partnership with YouGov, this Brexit survey was conducted in August 2018. 1,122 companies were surveyed across the UK, France, Germany, Spain and Ireland. Of these companies, 605 were start-ups (1-19 employees), 356 were scale-ups (20-199 employees) and 161 were enterprise businesses (200+ employees). The respondents were surveyed from a representative sample of businesses from our customer base and the general population. Statistics labelled European
Union (EU) include combined results for France, Germany, Spain and Ireland.
[1] Research conducted by YouGov between 14th – 28th August 2018 with a survey sample size of 1,122 businesses operating across UK & Europe
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