SME retailers: Brexit is our biggest challenge
More than a quarter of SME retailers are worried about Brixit and the impact that it will have on their business.
27 percent of SME retailers contacted as part of research by finance solutions provider Duologi said that Brexit posed the biggest threat to them, with 62 percent admitting that they felt unprepared and unclear of what the future of European trading meant.
24 percent of retailers polled also admitted that their biggest challenge was keeping up with digital trends, such as efficient online presence over larger and international competitors.
One in ten of those polled felt bigger players like Amazon could potentially steal customers through greater visibility online.
Michael Bevan, CEO of Duologi, said: “With political uncertainty continuing into the new year, SME retailers are still unclear on how this will affect them and how they can prepare.
“Despite additional resources being made available ahead of an exit from the European Union (EU), deadline extensions scupper existing plans and safeguards, putting small businesses in a difficult position. The economic uncertainty also fuels further consumer hesitancy when it comes to spending on significant purchases, as they are unclear on what the immediate impact of an EU exit means for them.
“Keeping up with new technology and investing in the latest innovations is also a worry for a large number of businesses, who are restricted by budget and lack of knowledge in the ever-changing area of technology. Larger businesses are also able to outspend smaller competitors and invest in their own unique innovations.”
Home and DIY retailers feared Brexit the most, while fashion, jewellery, sports and leisure retailers all listed keeping up with technology as their biggest challenge in the coming year.
Bevan continued: “However, there are simple measures which can be put in place to safeguard a business that trades frequently with the EU. Alternative POS finance options allow small businesses to move with the times and the demands of the consumer, making existing business models sustainable and even increasing number of purchases and revenue, in the process. POS finance options are quick and easy to implement, even for SME retailers, and can make paying by finance as easy as paying with a card.”
Worryingly, less than half of SME retailers are confident they will be thriving in a decade, as the various business challenges take their toll.
The report by Duologi, Finance: an SME issue, surveyed 500 SMEs across a range of retail sectors about their concerns for the future and their knowledge and understanding of point-of-sale (POS) finance.
To read the report in full, visit: https://www.duologi.com/download-sme