Smaller Scottish firms lagging on Brexit preparations as government is urged to do more
New research suggests SMEs are 'waiting for an illusive certainty'
Kristy Dorsey
Updated 07:18, 13 NOV 2017
Small and medium-sized businesses in Scotland are "waiting for an illusive certainty" on the post-Brexit landscape that is leaving them ill-prepared going forward.
The warning comes from the authors of a new report on the readiness of Scottish businesses for Brexit . Firms are being urged to up their game ahead of Britain's split with the European Union, while government needs to offer more support to the business community.
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The interim findings of Brexit and Scottish Business – a research project undertaken by Momentous Change, a venture set up by former MPs Michelle Thomson and Roger Mullin – show that the largest businesses are best prepared and the smallest are the least prepared.
In particular, the research to date suggests that the banking sector has undertaken the most detailed scenario planning. However, this so far appears to have been focused on their own businesses, not that of their customers.
Meanwhile, only 9 per cent of business respondents indicated they have consulted with their banks regarding Brexit.
Of the more than 160 senior business leaders engaged with so far via in-depth interviews, online survey, or both, 23 per cent had engaged with academics and 31 per cent with business groups. All had significant questions for both the UK and Scottish Governments.
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The two highest asks of the UK Government were firstly to establish transition arrangements specifically geared to assisting businesses (77 per cent), followed by a desire to make explicit those matters that will be devolved (76 per cent).
In relation to the Scottish Government, the key asks were for clarity on how any new devolved powers will be used (80 per cent), and to increase direct engagement with the business community (70 percent).
"The aim of our research – and our biggest challenge – has been how best to identify meaningful information that may guide future endeavours under the uncertain conditions posed by Brexit," said Mullin, an honorary professor at the University of Stirling Management School.
"This has led us to capture the views of business leaders spanning a broad range of sectors and representing businesses of varying scale from SMEs to some of the largest businesses in Scotland. Our approach has been to encourage reflection-in-action.
"The initial findings of our report indicate an urgent need for the Scottish Government to actively encourage joint efforts involving Scottish Enterprise, the relevant academic communities and business organisations in scaling up briefings on Brexit for the business community.
"These efforts should go beyond general briefings and involve practical workshops on surveying staff and skill needs, scenario planning and financial modelling."
Insider is holding its first SME Conference on November 30 at The Studio in Glasgow. The keynote speaker is former Head of Digital Marketing for Microsoft Allister Frost. For more information, click here
Scottish Enterprise