One in three UK SMEs are considering closing their businesses in the event of a no-deal Brexit, according to research from M7 Real Estate.
Some 45% of small businesses fear they will go out of business with a year with their current corporate set-up.
Businesses in London are at a greater risk of closure: 51% said they fear closure within a year, compared with 43% outside of the capital.
M7’s survey of 1,084 UK SME business leaders also found that 63% believe they their businesses may not survive longer than five years if the UK fails to negotiate a deal as it leaves the EU.
These leaders represent £7.5bn in annual turnover and employ 100,537 full-time staff.
See also: Heading for Brexit without a safety net
Richard Croft, chief executive of M7 Real Estate, said: “These robust statistics underscore the serious anxieties that exist across the SME community about the threatening impact of a no-deal Brexit.
The survey revealed that just 11% of SMEs believe a hard Brexit would be in the best interests of their companies, with 54% of leaders in support of remaining in the EU, and 68% in support of a second referendum.
Croft said a no-deal Brexit would have “significant consequences” for M7’s 3,618 UK commercial tenants.
He said: “We commissioned this independent national research as one of the UK’s largest SME landlords having continually heard feedback from our tenant base that they feel their concerns are not being listened to.”
If given the choice, 43% of leaders said they would vote to keep the original EU relationship, 35% said they would opt for a negotiated agreement, 15% for no-deal, and 7% would not vote.
In 2018, the combined UK turnover or SMEs was £2tn, representing 52% of all private sector turnover and 60% of all private sector employment, according to data from the National Federation of Self Employed & Small Businesses.
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