Four in 10 exporters have reported a fall in international sales since the end of the Brexit transition period, a major study has revealed.<\/p>\n
<\/p>\n
The finding forms part of the Federation of Small Business\u2019 (FSB) Small Business Index (SBI), which provides a summary of business performance for the third quarter of 2021.<\/p>\n
According to the tracker, four in 10 \u2013 around 41 per cent of traders \u2013 have reported a \u201cdrop off\u201d in international sales in the three months to September 2021 (up 10 per cent compared to the same period in 2019), while one in five exporters have either \u201cpermanently or temporarily halted\u201d overseas sales as a result of supply chain disruption.<\/p>\n
To make matters worse, four in five (79 per cent) exporters admit to not being \u201cfully prepared\u201d for the introduction of full customs controls coming into force on 01 January 2022.<\/p>\n
The index also found that one in seven (14 per cent) small firms reduced staff numbers in the three months to September, while eight in 10 (82 per cent) had \u201cno plans\u201d to increase staff numbers in the three months leading up to Christmas.<\/p>\n
It means that small business confidence has fallen by more than two percentage points since the second quarter of 2021, and almost nine points since the first quarter.<\/p>\n
Commenting on the report, FSB National Chairman Mike Cherry said small business confidence \u201csurged at the start of the year\u201d, but that resurgence has now \u201crun out of steam\u201d.<\/p>\n
\u201cToo many small exporters \u2013 often our most innovative and profitable firms \u2013 are struggling to get across new paperwork and preparations for import checks,\u201d he said.<\/p>\n
\u201cAs such, policymakers should revamp and relaunch the SME Brexit Support Fund, widening the eligibility criteria, and making deadlines for applications more realistic.\u201d<\/p>\n