Small IT firms unconcerned but cautious of Brexit impacts
Small technology firms have revealed that they believe Brexit will have little impact on their Software of IT Services (SITS) business, although many are proceeding with caution.
Of SITS suppliers with up to 50 staff, 40% have revealed that the decision to leave the EU has so far had ‘no impact’ on their business, according to TechMarketView.
However, one in ten report that orders have been delayed and since agreed, while nearly double that figure said orders were delayed but not signed.
Despite this, the overwhelming majority of firms suggest that their tech business will be largely unaffected come 2019.
Nearly six in ten SITS suppliers said they believe Brexit will have ‘little or no impact’ on their business, even once the negotiation process to leave the EU is complete.
Some 28% of firms reported that they expect to see a decline in business when the process is complete, while 13% expect to see business levels increase.
By March 2019 though, the number expecting to see an upturn in fortunes increases to 28%, with businesses confident they will be able to see out any potentially tough times that may lay ahead.
Of course it remains important to plan ahead, as a business can experience a change of fortunes very quickly.
In such situations it’s important to have contingency plans available in order to ensure the best possible outcomes for a business.
A firm could also consider turnaround management to improve performance, realign finances and to restructure debts if necessary.
Not only can these solutions provide some much needed breathing space for a business in difficulty, but it can also assist in the development of a long term strategy.
The TechMarketView study found that IT firms in the public sector have faced greater difficulties of late, as uncertainty and a lack of clarity is delaying investment decisions.
This is impacting on cash flow, while there are also concerns that rising pressure on public sector finances could cause issues in the future.
Meanwhile those in the private sector cite potential skills shortages and limits to exports as the main barriers to growth.
By Phil Smith