LONDON, Dec. 6, 2016 /PRNewswire/ -- An independent
study commissioned by Dun & Bradstreet has revealed a UK
business community hesitant to commit to a future in the UK
post-Brexit. Overwhelmed by concerns about the future of their
business once Article 50 is invoked, 19% of businesses have halted
or slowed growth or expansion plans in the UK. While nearly half
(49%) of senior financial decision makers admit their business is
likely to either leave or reduce investment in the UK post-Brexit –
and more than 1-in-10 (12%) admit this move is "highly likely."
Almost two-thirds (64%) of organisations feel that the result of
the EU Referendum has negatively impacted their business' growth
potential. Looking to the future, over half (59%) of organisations
believe Brexit will be financially damaging to their business. As a
result, almost three-quarters (72%) are planning for change
post-Brexit to manage expected market and business
fluctuations.
"It is clear that businesses are analysing and in some cases
reconsidering their position in the UK," commented Markus Kuger, Senior Economist at Dun &
Bradstreet. "Until we know exactly how Brexit will happen – for
example, whether the UK will maintain access to the EU's common
market once it leaves the EU – businesses are going to be cautious.
No one knows what the business world, and the economy it drives,
will look like post-Brexit. We recommend that businesses make
contingency plans and remain vigilant of market activity but also,
remain calm."
Assessing how the EU Referendum result has impacted their
business already, the survey highlighted main consequences, such
as: their organisation has become more cautious about investments
and expenses in general (24%), while 19% of businesses have seen a
dip in deals with European partners and/or customers. Overall, 60%
of businesses admit that since June
23rd, their business has become more risk
averse.
When asked what most concerns them about the future of their
business in a post-Brexit world, respondents revealed a clear trend
toward access to information and business growth opportunity. 41%
of businesses are worried they will no longer have access to as
much information about European partners and customers – a vital
factor in successful decision making. Additionally, over a quarter
(27%) are concerned they will miss out on business growth
opportunity because they are not part of the EU. While almost
one-in-five businesses (16%) are worried they will not have the
bandwidth to manage the amount of work needed to ensure regulatory
compliance post-Brexit.
"It's clear that uncertainty from the EU referendum is clouding
organisations' planning and confidence. They are worried about
their own growth opportunities and, more specifically, they are
concerned about essentially being 'cut out' of the European
business community," said Kuger. "The only way to truly alleviate
their fears is for the Government and the EU to make clear what
will happen once Article 50 is invoked. The future may not be as
dramatic as businesses seem to be anticipating. But until that
picture is clearer, we cannot blame them for worrying and starting
to think about their future away from the EU."
Editor's notes
Methodology
Research for this study was undertaken by Censuswide, a
respected independent research company. Responses were gathered
from 200 CFOs or Financial Directors from media and large
enterprises across the UK. The online survey was carried out
in October 2016.
About Dun & Bradstreet
Dun & Bradstreet (NYSE: DNB) grows the most valuable
relationships in business. By uncovering truth and meaning from
data, we connect our customers with the prospects, suppliers,
clients and partners that matter most, and have since 1841. Nearly
ninety percent of the Fortune 500, and companies of every size
around the world, rely on our data, insights and analytics. For
more information, visit dnb.co.uk/brexit. Twitter: @dnbukteam
MEDIA CONTACTS:
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SOURCE Dun & Bradstreet