Boris Johnson

Other than the pandemic, 57% of Scottish SMEs stated that fallout from Brexit is the biggest challenge facing UK SMEs today – a concern shared by SMEs nationwide.

The exclusive survey by the leading provider of money, advice and workspace to SMEs, Newable, reveals that 40% of Scottish SMEs are experiencing drops in revenue, compared to 49% across the U, suggesting Scottish SMEs have been hit harder by the pandemic.

However, this figure is down 20% from Q2, showing some strong recovery from Scottish SMEs. 71% of Scottish SMEs believe that it will take over 24 months to recover financially from the pandemic with the majority of the country believing their businesses will recover in under 12 months.

Only 22% of Scottish SMEs think the economic package rolled out by the Government has been favourable to them and only 26% feel well supported by the U.K. Government, suggesting the latest lockdown has tempered confidence in the current Government. Despite this, only 26% of Scottish SMEs would like to see Rishi Sunak replace Boris Johnson as PM. Nationally, support for Sunack has increased with 41% of U.K. SMEs wanting to see him take the role as PM, up from 36% in Q2.

Despite 57% of Scottish SMEs stating that they like working from home, only 31% of Scottish SMEs would like to work full time at home, with an equal percentage stating they would like part time home and office working. Additionally, 81% of SMEs have seen no change or even a rise productivity since working from home.

Chris Manson, CEO of Newable, said: “It is comforting to see Scottish SMEs are starting to show some signs of recovery in respect to revenues, however it is clear that Scottish SMEs have been hit hard by this ongoing crisis. Whilst the pandemic continues to take up most of the current debate, it clear that Scottish SMEs are fearing the fallout of Brexit and more needs to be done to ensure SMEs are supported during the transition.”

With 48% stating working from home has not had an impact on morale, the lack of human interaction (33%), and team contribution (21%) are among the things missed most about working from home. The results suggest that we may see a ‘flight to flexibility’ – with companies shifting to hybrid working styles.

The desire for flexible, short-term contracts is of upmost importance to SMEs, with 45% selecting it as the most important option when considering an office (along with parking), followed by the ability to easily change the size of your space at 43%. These figures suggest that Scottish SMEs crave flexibility and a lower financial risk when selecting office spaces, especially during times of uncertainty.

Chris Manson added: “There is no doubt the pandemic has changed the world of work forever. It is interesting to see how many Scottish SMEs actually do crave an office environment, but want flexibility to create an office and home working mix that works for them. There will always be a need for human interaction and team collaboration through using an office, but it is good to see the increase in productivity generated through home-working as we fight through this second lockdown.”