Almost half (41%) of the small business owners surveyed believe that the eurozone will cease to exist in its current form
• Two-thirds say British government not doing enough to support SMEs, and export-led recovery is not working
• Concerns over future of the euro also revealed; half of SMEs believe one or more countries will leave eurozone
April 2012: The future of both the pound and the euro are in question according to new research of UK small businesses. The research , carried out by currency specialist Moneycorp, reveals that a third (33%) of SMEs think that the British pound will be replaced in the next 20 years.
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.
Almost half (41%) of the small business owners surveyed believe that the eurozone will cease to exist in its current form, with Greece topping the list of countries expected to leave the single currency, followed by Ireland. A third (33%) of SMEs has gone so far as to put contingency plans in place for if the euro disappears.
Chris Redfern, currency dealer at Moneycorp comments on the findings:
“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. 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.”
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.
Currency fluctuations are cited as the biggest hurdle for operating overseas (24%), followed by language barriers (19%). Almost half (44%) are unclear about the possibility of the pound strengthening against other currencies in the next six months. However with just over a quarter (27%) choosing to consult a currency specialist when dealing with currency overseas, there is more they could be doing to mitigate against the risks involved.
Some positive news comes from the fact that three-quarters (73%) of the SMEs surveyed are confident about their business prospects this year, with Europe still offering the most potential to UK business.
Chris Redfern continues:
“The turmoil that has continued to plague the eurozone for the last two years, combined with a fluctuating pound has led to uncertainty among small business owners about the future of the established currency arrangement.
“Being aware of the risks involved in doing business overseas is the first step in countering the impact of currency fluctuations. Planning ahead, establishing forward contracts and getting the right advice, will be key in steering SMEs through future foreign exchange storms.”
Moneycorp is the trading name of TTT Moneycorp Limited – the UK’s leading foreign exchange provider – and last year traded £11.1 billion in currencies on behalf of its clients. FSA regulated, the company has also maintained ISO 9000 Quality Assurance certification since 1996 – which is a unique achievement in the FX industry.
Moneycorp provides expert, tailored services for businesses and personal clients. The company helps SMEs and individuals to manage their international money transfer requirements by helping them save money on rates and timing their transfers more effectively.
Moneycorp began dealing in foreign exchange in 1979 from a branch on Oxford Street and has since grown its bureau de change network to 27 outlets. The company also offers an online travel money service, so customers can order currency for home delivery, or for branch collection – all at great rates. In addition Moneycorp has launched the world’s first pre-paid card that holds up to 14 currencies, offering customers a safe and secure method to carry their travel money.
If you would like any more information on the research referenced in this press release, please contact The Red Consultancy.
Contact: Flora Hancox, Red Consultancy
T: +44 0207 025 6576, E: email@example.com
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