Britain’s small commercial property businesses are uncertain over the long-term future of the pound, according to a new study.
A survey from currency specialist Moneycorp found that 33 per cent of small to medium sized commercial property enterprises think the British pound will be changed in the next 20 years. Over two thirds said they had not seen an increase in export sales due to the pound’s fairly weak position, in spite of Government hopefulness of an export-led recovery.
A further 66 per cent feel the Government is not doing enough to help small commercial property businesses, while a quarter of respondents (26 per cent) do not think the pound will improve. A further 44 per cent are undecided whether the pound will improve over the next six months.
The survey also revealed negativity directly at the Euro, with 41 per cent of commercial property SMEs saying they believed the Eurozone would cease to exist in its current life. When asked which countries were likely to leave the single currency, Greece came top of the list, followed by Ireland.
There is also an indication that SMEs are taking matters into their hands, with 33 per cent having put contingency plans into place should the euro disappear or breakdown.
Currency dealer at Moneycorp, Chris Redfern, said: “Though small businesses have pinpointed by the Government as the lifeblood of the UK economic recuperation, few of them are actually benefiting from the policies put in place.”
He further added: “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 [on] their operations overseas.”
Exporting can be challenging for commercial property SMEs and unstable currency markets do not make matters any easier. Currency variations were cited as the biggest obstacle for operating overseas by 24 per cent of respondents, followed by language barriers at 19 per cent.
In spite of the pessimism, 73 per cent of the SMEs surveyed are assured about their business prospects in 2012, with Europe still an important driver of potential to UK commercial property firms.
Redfern added: “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.”
