Business services sector unfazed by Brexit
Bek Frith, December 05, 2016
SMEs in the business services sector were most optimistic about Brexit's impact
Seven in 10 (69%) of those in the business services sector do not see Brexit as a threat, according to data from insurance company RSA.
The Future Impacts report found that 49% of business leaders in this sector thought that leaving the EU will have no impact, and 20% said it will have a positive effect on their business.
SMEs in the business services sector were slightly more optimistic, with 70% claiming Brexit will pose no threat.
However, 28% of SMEs in business services say they would go out of business if faced with an unexpected bill of £50,000. Furthermore, more than half (51%) of SMEs in this sector are not insured against any of the top three financial risks to their firm. Respondents identified these risks as economic uncertainty (35%), increasing market competition (35%) and cash flow issues (31%).
Cyber security was found to be lacking, with RSA’s research revealing that only 9% of businesses had cyber cover in place, and only a quarter (26%) were concerned about the threat posed by a cyber attack.
Russell White, schemes and deals director at RSA, said that it is not only the responsibility of SMEs themselves to better manage risks.
“Insurance should be viewed as part of a business’ growth strategy that helps mitigate harmful risks, though more than a third (34%) of business services SMEs are not protecting themselves properly because of the perceived cost of premiums,” he said. "Additionally, 47% of SMEs in business services have not reviewed their insurance in the past year.
“The onus is not only on SMEs themselves to better manage their risks, but also on brokers and insurance providers to raise awareness of the protection gap and help SMEs better understand the risks they face, and what they can do to protect themselves against them.”