It’s just under one month since the decision by the UK electorate to exit the EU. What has happened in that time? Politically there have been seismic repercussions; a new Prime Minister (and therefore leader of the Conservatives) and the Labour Party is experiencing its own leadership turmoil.
Economically, have the same issues been felt? While the financial sector has been hit hard, some areas have reported no real impact at this time. The FTSE 100 is now higher than it was on 24th June 2016 when markets opened immediately after the Brexit was confirmed, currency is rallying and the gloom is not as widely felt as one might have feared. However, Topple.com believes that SMEs are savvy enough not to take this for granted and that they are likely to exercise prudence until the end of 2017 (at the earliest).
Toople.com predicts the following trends short-, medium-, and long-term for SMEs across the UK:
- Wages and recruitment. Wages will be held under control, whilst proactive recruitment might be halted, it is very much business as usual.
- Technology. SMEs will be looking for value for money in all technological and connectivity matters. They are likely to be less loyal to big brands; value will be the order of the day. This gives Toople.com a great opportunity to introduce its FREE BUSINESS BROADBAND and its soon-to-be-launched business mobile offering.
- Regulation. With Theresa May now installed at No.10 and Philip Hammond taking up the post of Chancellor of the Exchequer, SMEs will be keen to see whether regulation changes and incentives will be offered to the entrepreneurs of the UK.
- Bank of England. A further cut in interest rates could inspire confidence but Toople.com wonders, how low can it really go? In the short-term though, this might help SMEs with their cash flow, transactions and encourage a “business as usual” attitude. If it were needed at all.
- Customer loyalty. The value of existing relationships will sharply come into focus – even more than before –we could see a new model of business development.
What of the SMEs that export?
With 28% of UK based SMEs exporting, Topple.com naturally expects some pessimism and maybe a little over reaction. In reality however it’s too early to understand the total effect; this might not be defined until 2026. The SME business owners Toople.com has spoken to confirmed that they are awaiting the fallout of discussions regarding trading abroad to see whether it will directly impact negatively their relationship with their clients in foreign markets.
Daniel Clement, head of sales at Toople.com commented: “Where there are challenges - as there are now - it can also throw up fantastic new opportunities. Only serving SME sized businesses, Toople.com could nervously look over our shoulders but we need to be brave; demonstrate resilience balanced with a proven ability to deliver. We are looking forward to working with likeminded growing businesses; we can offer assurance regarding costs so business owners know exactly where they are financially; our free business broadband will certainly help here.”