A recent survey by the Federation of Small Businesses (FSB) reveals that small firms are in urgent need of more support from the Government to overcome a worrying lack of preparedness for the potential event of a no-deal Brexit.
The survey found that just 21 per cent of small businesses have planned or prepared for anticipated issues in the event of the UK crashing out of the European Union with no deal. Meanwhile, 63 per cent do not think they can plan ahead of the proposed 31 October exit date.
Businesses in London are even more pessimistic, with 48 per cent of small firms believing that a no-deal scenario would negatively impact them and only six per cent thinking that it would have a positive impact on them.
According to the survey, the average cost of preparing for a no-deal Brexit for a small business is around £2,000, with the average cost rising to £3,000 for those businesses that import and export goods.
The survey found that 31 per cent of prepared small businesses have stockpiled ahead of the planned exit date, and a further 34 per cent have reported temporarily or permanently reduced profitability.
However, 46 per cent of small firms that believe they would be negatively impacted by a no-deal scenario would welcome some form of financial support.
Meanwhile, volatility in the value of Sterling is also creating issues for some firms, with 46 per cent stating it has negatively impacted their business.
A spokesman for the business group said that financial assistance, such as vouchers worth up to £3,000, could be provided to help with cash flow in preparation for a no-deal Brexit.