A Third of Small Businesses Alter Strategy Following Brexit
As small enterprises tighten their budgets, advertising is bearing the brunt with the industry expected to shrink 1.3% this year
One third of UK small and medium-sized enterprises have already amended their business strategy due to the economic uncertainty caused by Britain leaving the EU (Brexit), according to research from The Clubhouse.
The survey of 250 business owners revealed that 78% of respondents have ‘negative feelings’ about the nation’s economic outlook over the next year with 54% citing concerns over potential long term damage to UK business.
As small firm owners begin to prepare for what could be rough seas ahead, expenditure is being tightened with advertising appearing to bear the brunt of the increase in frugal activity.
The Institute of Practitioners in Advertising (IPA) Bellwether Report has downgraded its advertising spend forecast for the next 12 months from 3.3% growth to – 0.2%, with the market expected to shrink further next year by 1.3%, down from the previous outlook of 2.7% growth.
Adam Laskey, Clubhouse founder and CEO, said:
“We all know that mixed signals and mixed messages resulted in a referendum result that few expected.
“The vast majority [of business owners]– 66% -have not made any immediate changes nor have delayed making any major business decisions as a result of the referendum result. So with true entrepreneurial grit, resilience and tenacity, the conclusion is clear: Keep Calm and Carry On!”