ALMOST two-thirds of Northern Ireland SMEs believe Brexit will have a negative impact on their business, according to a new survey.
The latest AIB Sentiment Index, which covers the island of Ireland, reveals that 62 per cent of small businesses in the north believe Brexit will harm their business, compared to just half in the first quarter of the year.
The survey, which covers July through to September also shows that 58 per cent of local SMEs have either reviewed, postponed or cancelled investment plans due to Brexit, while one in 10 (11 per cent) has postponed bank borrowing.
Fears of a hard border have also increased, with almost a quarter (24 per cent) of businesses now concerned the outcome is a realistic possibility.
The main source of negativity for Northern Ireland businesses remains the the lack of visibility as to what Brexit means for them, cited by 85 per cent of respondents.
Despite the serious concerns expressed in relation to Brexit, nearly two-thirds (63 per cent) of Northern Ireland small businesses have yet to start planning for it, with just 3 per cent stating they have a formal plan in place.
Head of business and corporate banking at First Trust Bank, Brian Gillan said there is a clear need for local businesses to begin preparations.
“With March 2019 looming large, we would continue to urge all companies to start this process sooner rather than later and to seek help from their key advisers to get them started on the road to understanding the challenges and opportunities presented by Brexit," he said.
The AIB Brexit Sentiment Index is a quarterly survey of more than 700 SMEs in Northern Ireland and the Republic that assesses the attitudes of SME business leaders on Brexit and its impact on their businesses.
