The Courier & Advertiser (Fife Edition)
Businesses not ready for Brexit, says survey
Not enough bosses talking to experts about issues
Small businesses in Scotland are the least prepared for Brexit, according to a report.
Companies with more than 250 employees appear more prepared and the banking sector has undertaken the most detailed scenario planning for leaving the EU.
However, it appears more focused on its own businesses than that of its customers, according to a survey by consultancy Momentous Change, set up by former SNP MPs Michelle Thomson and Roger Mullin.
They surveyed more than 160 business leaders and found only 23% had talked to academics and 31% with business groups about Brexit.
Only 9% of business respondents said they have consulted with their banks but all had questions for both the UK and Scottish Governments.
The two highest asks of the UK Government were to establish transition arrangements to help businesses and to make explicit matters that will be devolved to Scotland.
In relation to the Scottish Government, the key requests were to make clear how it would seek to use any new devolved powers and to increase direct talks with the business community.
Mr Mullin, who is honorary professor at Stirling University’s Management School, said: “The initial findings of our report indicate an urgent need for the Scottish Government to actively encourage joint efforts involving Scottish Enterprise, the relevant academic communities and business organisations.
“These efforts should go beyond general briefings and involve practical workshops.”
Ms Thomson said: “We asked our business respondents to indicate with whom they had consulted as part of preparations for Brexit and to our surprise, only 9% indicated engagement with banks.
“The functioning of an effective banking and financial system is critical for all sectors of the economy and this lack of engagement ... should set alarm bells ringing.
“How banks and financial institutions will manage their existing business client base if economic turbulence continues is unclear.
“Are existing businesses holding loans from banks going to find any new flexibility to support them? What role will government play in supporting lending during a period of turbulence?
“There are many uncertainties and many complexities, but there is a common cause to find, at a minimum, the best coping strategy for each business and at best, to seek out the type of innovation and change that will provide a strong platform for the future, whatever that future may be.
“Crucially, we need leaders from government, business and academia to come forward and assume responsibility for guiding businesses through Brexit.”
Crucially, we need leaders from government, business and academia to come forward and assume responsibility for guiding businesses through Brexit