UK SMEs Still Stuck in Brexit’s Tail‑winds, Says BFX
After four years of trade turbulence, the Brexit weight is getting heavier for UK small and medium‑sized enterprises (SMEs) that love to trade overseas. New data from Bibby Foreign Exchange (BFX) shows that “more than half feel the impact profoundly”, with inflation chasing behind as the chief growth roadblock.
Eyes on the Numbers
- 55 % of UK firms say Brexit continues to be a major hurdle.
- 49 % find EU trade more expensive and less profitable.
- 40 % flag tariffs, customs and formalities as chief pain‑points.
- 20 % are over the moon about a new government moving Canada back into the EU.
Back to the 2017 Benchmarks
When BFX first released its Trading Places report in 2017, 41 % of importers and 29 % of exporters worried Brexit was hurting them. Fast forward to today, the figure has ballooned to 62 % of importers and 63 % of exporters seeing a negative effect.
BFX’s Managing Director Gets Real
“Four years on, the Brexit burden is growing, not shricking,” says Michael McGowan, BFX’s Managing Director. “We’re seeing a raft of supply‑chain headaches, European conflicts and Middle‑East tensions all piling on top of the {EU border checks} we’re already dealing with.”
With brand‑new post‑Brexit border checks rolling out this month, McGowan warns: SMEs that once shipped with confidence now find their paperwork labyrinth more difficult and time‑consuming.
Europe Still the Big Buddy
Despite the fallout, the UK’s biggest trading partner remains the EU. 61 % of UK firms still trade with EU member states, jumping to 69 % for those with turnovers between £500,000 and £1 million. Yet a growing segment is turning away:
- 40 % trade less with EU partners.
- 21 % gravitate toward non‑EU customers and suppliers.
What Politics Might Return
Look ahead to 2024’s general election – 44 % of SMEs want the new government to revamp the UK‑EU Trade and Cooperation Agreement for smoother trading. Meanwhile, 36 % seek fresh deals beyond Europe.
McGowan sums it up: “These businesses are leaning it’s time to think beyond Europe – a practical, real‑world mindset,”. Yet their longing for closer EU ties never truly dies out. “If policymakers ignore the small business voice, the losses could be steep – for the businesses and the national economy alike.”
So, as the UK exits the EU on free‑flow terms and faces rising border hurdles, SMEs stand at a crossroads – choose the familiar path or branch out to new horizons. It’s a crucial moment for government and business alike to join forces and make trade easier, not harder.
