A third of small businesses in the UK believe the British pound will be replaced in the next 20 years amid fears the government is not doing enough to support SMEs, according to a new survey.
Currency specialist Moneycorp said that despite the government’s hopes for an export-led recovery based on a weak pound, more than two-thirds (68%) of small business owners claim that they have not seen a rise in export sales from a weakened Sterling.
A further two-thirds (66%) do not believe that the British government is doing enough to support SMEs and a quarter (26%) of those surveyed do not think the pound will strengthen.
“Though small businesses have been pinpointed by the Government as the lifeblood of the UK economic recuperation, few of them are actually benefiting from the policies put in place,” said Chris Redfern, currency dealer at Moneycorp.
“Their fears have not been allayed by promises of an export-led recovery and a third of them are uncertain about the future of the pound. The result is a confusing situation which is impacting their operations overseas,” he added.
Almost half (41%) of the small business owners surveyed believe that the eurozone will cease to exist in its current form and a third (33%) of SMEs have even gone as far as putting contingency plans in place for if the euro disappears.
Small businesses are fully aware of the impact of continued currency fluctuations on their bottom line and business growth, with eight in ten (80%) considering currency strength an important part of their decision to expand overseas and almost two-thirds (61%) accounting for currency fluctuations in their budgeting plans.