As part of a survey from Citibase Business Confidence Index, two thirds of SMEs have said that they believe Trump’s win could either be positive or have no effect on business. A further 18% went the opposite way and said they thought that Trump would have a negative effect on business.
Hard versus Soft Brexit
More SMEs prefer the idea of a soft Brexit 42% than a hard Brexit, 33%. London who voted to remain had a higher percentage of people favouring a soft Brexit at 54% as well as a higher concentration of businesses based there.
The CEO of Citibase, Steve Jude said: “SMEs are the heartbeat of the UK economy and we have found that both Trump, and the impact he is having on the world, along with the confusion surround the UK’s Brexit strategy has been mostly water off a duck’s back for our country’s SMEs.
“When it comes to the type of relationship SMEs want with Europe, opinions are mostly in favour of a ‘soft’ Brexit, which is timely with the fluctuation of sterling due to ongoing Brexit discussions.”
Businesses have been split down the middle when it comes to their expectations from Brexit. There also seems to be a correlation between those who would prefer a hard Brexit and those who are more optimistic about Trump’s effect on business. They tend to think that the new president will have a less negative effect on business.
Of those who want a hard Brexit, 61% say that Trump will have no effect on business. 19% said that he would have a positive effect. On the other hand, those who would prefer a soft Brexit are more likely to view Trump’s win as a more negative, 29% said they thought this.
Business contracts
Uncertainty and business confidence have affected the length of office contracts that SMEs are committing to. There has been a jump from 57% to 59% of people preferring short contracts of less than three years. There has also been a jump from 25% to 29% of those wanting contracts of less than a year.
“2016 was a year of significant political change with the UK Brexit vote followed by a Donald Trump US election win. No one can predict the future, however with all this political uncertainty, it is unlikely a business would sign up to an office for the long term,” said Jude.
What do you think about the future of business? Are you optimistic or fearing the worst? Share your thoughts in the comments section below!