Vast number of small businesses have postponed activity due to Brexit
40% of small firms are freezing investment decisions while 15% have held off on entering new business relationships until after the referendum on June 23
More than 40% of the UK’s small and medium-sized businesses have admitted that the European Union (EU) referendum has already impacted their current investment decisions, in a survey conducted by Capitalise.com and PKF.
Almost a fifth of the respondents said that they are focusing less on business growth in Europe, while a further 15% said they have postponed entering new business relationships until after the EU vote on 23 June.
Despite continuing economic uncertainty, small business leaders also claimed to have a “high level of understanding” of the implications of leaving the EU, with one in six having reached out to their accountant for advice.
Last month it was revealed that UK start-ups with more than £100,000 turnover are more inclined to vote leave.
Paul Surtees, managing director and co-founder of Capitalise, said: “There have been countless forecasts on a future outside of the EU but we have uncovered that the threat alone is having an impact.
“While we would expect confidence amongst small businesses to be shaken, to hear that one in three has already changed its investment strategy is indicative of just how fragile our small business economy is when faced with such uncertainty.”
Find out what other small businesses think Britain should stay in the EU in our BREXIT: Should we stay or should we go? feature.