Canny Scottish businesses fear Brexit

While the thoughts of Scottish businesses largely mirrored the rest of the UK, some differences stood out:

While Scottish SMEs see market access and trade as government priorities, only 25 per cent of respondents believed the UK government should prioritise environmental legislation and emission targets, with 34 per cent believing that setting immigration targets should be a government priority. Additionally, 39 per cent saying government should prioritise support for exporters helping trade outside the EU.

While opinions are mixed over strategy and recruitment, a similar picture emerges when it comes to productivity. Some 48 per cent expect Brexit to increase their cost-base, while only 36 per cent expect to recover this through price increases. Unsurprisingly then, just under one-fifth (18 per cent) say they have the right level of management information (MI) to help them fully) to help them fully measure and predict the impact on their business. More than one-third (35 per cent) feel their current MI does not help them assess the impact of Britain leaving the EU.

Peter Kelly, senior finance partner for the regions, says the absence of reliable or appropriate management information will not help SMEs make decisions that are right for them:

“Entrepreneur’s ability to turn on a shoe-string and make things happen is quite often a hallmark of their success. So, at times like this, the most important thing is to ‘keep calm and carry on’.

“Our survey paints a picture of SMEs largely united in urging government to maintain the status-quo in terms of access to the single market, to open up new markets and to support companies as they realign export activities.

Kelly added: “As the survey results show, without a robust plan coupled with clear, accurate management information, SMEs may struggle to remain competitive.”

“What’s worrying here is that, while most companies have clear views about what they want in terms of market access and government priorities, when it comes to strategy, pricing and management information, there is much less confidence and certainty.

“The imbalance between cost and prices will squeeze margins and reduce productivity while the lack of confidence in internal management information systems could leave companies unable to make informed choices.

“The level of confidence in new opportunities in new post-EU markets is encouraging, but companies need to have the same level of confidence in their systems to get them there.”