TWO thirds of SMEs in the north have said Brexit is not impacting on business, with just 2 per cent putting a formal plan in place, according to a new survey.
The AIB Brexit Sentiment Index, which covers Northern Ireland and the Republic, has revealed the majority of businesses remain unaffected by the proposed withdrawal from the European Union, with three quarters of SMEs in the latter area reporting no impact. The proportion of Northern Ireland SMEs claiming no Brexit influence on sales has risen to its highest point at 76 per cent, while those experiencing higher costs as a result of the vote has fallen to 40 per cent in comparison to 62 per cent at the end of 2017.
That being said concerns remain around the future post-Brexit. In the north these centre around a lack of visibility, while those in the Republic are becoming increasing concerned about its future impact.
The retail and manufacturing sectors are the most negative in the north surrounding Brexit, but overall sentiment, while still pessimistic, has become less so. This is direct contrast to SMEs in the Republic.
The index shows that businesses on both sides of the border are still dragging their feet in relation to Brexit, with a quarter of SMEs due to invest or expand before the vote now reviewing plans, while over one in five have postponed or cancelled them. The majority of SMEs have also yet to put a formal Brexit plan in place with only 2 per cent in the north and 4 per cent in the Republic making such a move, while a worrying 71 per cent of businesses in the north are yet to begin any form of planning
compared to half of those across the border.
Head of business and corporate banking at First Trust, Brian Gillan said there remains concerns among the business community in Northern Ireland about Brexit, despite the relative positivity.
“Whilst this is the third consecutive improvement in sentiment expressed by SMEs in Northern Ireland, the lack of visibility and uncertainty still prevails, as reflected in the border issue, but perhaps the growing optimism reflects the progress made over the last quarter and a belief that both sides will get a satisfactory deal done.”
AIB’s Brexit Sentiment Index conducted by Ipsos MRBI, is a quarterly survey of more than 700 SMEs in Northern Ireland and the Republic that assesses the attitudes of business leaders on Brexit and its impact on their businesses.
