To make a success of a new venture three things are needed – a clear view of the opportunity, optimism to believe in a plan of attack and the dedication to make it happen.
We are now in sight of 29th March 2019 or “Brexit day”. Politics should be left aside and consideration made for the commercial opportunities this creates.
Terry Forsey finds himself asking the following, “How well equipped are UK small and medium-sized businesses (SMEs) in general and what are the potential positive outcomes for UK Smaller Software and Technology businesses?”
Too much of the Brexit debate focuses on the impact for larger companies. There is little analysis about how SMEs are likely to be affected, even though they are often considered the backbone of the British economy.
The FSB reports that the UK has 5.7m SMEs, accounting for over 99% of private sector firms and 60% of total UK private sector employment. SMEs have an annual turnover of £1.9 trillion and account for 73% of all net private sector job creation in the UK, creating about 2m jobs since 2010.
A recent study by academics from the University of St Andrews found that an amazing 84% of SMEs believed Brexit would not be a major obstacle for the growth of their business. The study also found that these SMEs were ambitious and innovative. Furthermore, smaller businesses have a more positive view of the new situation.
There were geographic distortions with Northern Irish (25%) and Scottish (21.2%) firms seeing Brexit as a major obstacle, compared to those in Wales (16.3%) or England (15.4%).
Optimism and enthusiasm is there.
What about the opportunities open to UK Smaller Software and Technology businesses in the new post Brexit world?
Starting with government investment and identifying the Major Development projects which will NOT be impacted by Brexit are: HS2, Airports Expansion, Broadband/Communications Infrastructure, House Building & the maintenance & the compliance of Public Housing stock. Furthermore, additional NHS Investment has been earmarked though specific projects have not yet been identified.
Each of these investments comes with two common traits. These developments are underpinned by a considerable investment in technology and they will be delivered by contracts which the government has committed “to spend £1 in every £3 with small businesses” by 2020.
Furthermore, the supply chain for these contracts will present further opportunities to Smaller Software and Technology businesses. Supply chain contracts offer opportunities to fulfil demand. And growing supply chain businesses will need to bolster their inevitable growth with better technological infrastructure.
Terry Forsey believes there are excellent opportunities for UK Smaller Software and Technology businesses as we enter the post Brexit world. The innate optimism of small entrepreneurial businesses will provide the drive and desire to take advantage of these opportunities.
He suggests that success will come about by creating a plan of attack which combines R&D investment in new solutions with modern sales and marketing techniques to win new customers.
Brexit will cause changes across the UK Business landscape and, once businesses are more certain about how this will evolve, they will be able to identify further the opportunities that this has created.
We work with smaller software businesses, helping them to grow their businesses through effective sales and marketing. If you would like an informal chat with us about how we can help your business, get in touch on 01536 771440 or click here.