One third of SMEs plan technology spending boost after Brexit
Research from Leonne International, the private equity firm focussed on the development of SMEs suggests that at least one third of companies is planning to increase technology spending once Brexit has been finalised.
Nearly 32 per cent of small and medium sized enterprises (SMEs) are planning to increase technology spending by 10 per cent in the first three months following the UK’s official departure from the European Union on Friday January 31st.
The findings were contained in a survey of 200 senior business decision-makers in SMEs conducted by independent polling company Censuswide and commissioned by Leonne International, the private equity firm focussed on the development of SMEs.
The polling also found that over one quarter (28 per cent) of UK small and medium sized enterprises (SMEs) are expecting a revenue bounce in the first three months following the UK’s official departure from the European Union on Friday January 31st. The survey also found that 37 per cent expect the UK economy to grow substantially following Brexit. Business owners from West Midlands are most confident of this, with 50 per cent agreeing, followed by 45 per cent of North West of England and 42 per cent of the North East.
Furthermore, 41 per cent of surveyed business decision-makers believe a majority government to be good for their business growth, rising to 60 per cent of those from the North East.
The polling also found that 51 per cent agree the government should offer more tax breaks to SMEs this year. Meanwhile 18 per cent are planning to open a new office in 2020 and a further 32 per cent are planning to increase technology spending this year.
Michael Haston, CEO, Leonne International said, “As we reach the final chapter of the Brexit saga, business decision-makers will be relieved to finally have some clarity about the future of our economy, industry and trade. Therefore, we can expect 2020 to be a great year for many SMEs.”
Sridhar Iyengar, MD of Zoho Europe told The Commentator, “SMEs serve as the engine of the UK economy, creating jobs and driving growth, yet all too often these pioneering companies lack the necessary IT support systems to thrive. Every ambitious business owner knows that with increased headcount and revenue comes more administrative responsibility. This aspect can often wrong-foot companies, leaving them distracted trying to juggle sales, marketing and a host of other roles with limited resources. Iyengar continued,
“In 2020, the culture of SMEs getting stuck managing IT processes instead of focusing on new business and customer acquisition must come to an end. Increasing investment in technology this year will only work if businesses recognise the benefits of SaaS solutions, to cater for everything from finance, CRM to analytics. They should also understand the true power of these solutions can only be unleashed if they work together seamlessly. By harnessing a flexible approach to IT, UK SMEs can spend less time on back office admin and more time increasing market share.”
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