SMEs are not put off by Brexit

SMEs are not put off by Brexit

The surprise Brexit outcome from last year’s EU referendum has done nothing to discourage business start-ups over the past 12-months. In fact, during the period from January to June 2017, almost 3,000 new small businesses were registered for insurance.

The biggest increase came within the service and repair sector, credited in part to the nation’s new-found love of recycling and upcycling. Around 81% more new businesses were registered in this sector in the first half of 2017. Furniture repair businesses alone are seeing a 60% increase.

You shouldn’t believe all that you read about the death of the high street either – the number of businesses based on Britain’s high streets has increased by 5% since the Brexit vote.

However, not all sectors are seeing the same kind of increases. Publishing, for example, has dropped by 40%, although this could be due in part at least to the growing trend for self-publishing. The IT sector has seen an increase of 18% thanks to the increasing trend of IT services being outsourced. Increases have also been seen in the leisure and tourism sector as well as the hospitality sector, with rises of just under 10% each.

It may come as a surprise to find that the creative industries have taken a small hit, with marketing and advertising businesses dropping by 5%, and film, fashion, photography and art-based businesses dropping by 4%.

The research was undertaken from within the insurance sector, and industry experts have stated how it is a good thing that the uncertainty linked to Brexit has not dented the nation’s passion for entrepreneurship. However, they are also keen to remind those who start their own company that it is important to protect a business and its workers, and the right first step is to make sure that the right insurance protection is in place with the right level of cover.  

Learn more about our insurance solutions for SMEs here