Business Uncertainty Prompts SME Owners To Wait For Election Outcome

A significant number of SMEs across the UK are delaying investment plans in the face of uncertainty over the outcome of the general election.

The most recent Close Brothers Business Barometer found that as many as a fifth of the UK's small and medium-sized enterprises are concerned about the possibility of an EU referendum, as well as the potential for another coalition government.

This uncertainty among SME leaders is causing many to delay investments until after the election at a time when confidence and investment among SMEs is generally high.

"Both [factors] could have significant consequences for business and so it is understandable that some are holding back from making important business decisions pending a clearer picture of the future," said CEO of Close Brothers Invoice Finance David Thomson.

"The latest Business Barometer showed that 73% of UK SMEs do plan to invest in their business during 2015 so let’s hope that uncertainty around the election will not affect their intentions," he said.

Expert Opinion

While small businesses have enjoyed a positive couple of years after difficult times in the economy, it is understandable that the upcoming election and uncertainty regarding the outcome would see them take on a greater level of caution. <br/> <br/>"However, Close Brothers figures do show there is a strong intention to invest in their businesses in the coming months, so it will be interesting to see if many still choose to take that step. <br/> <br/>"Whatever their plans for the future, we would always urge small businesses to speak to legal advisers to ensure all of their plans comply with the necessary legal requirements." Fergal Dowling - Partner