Just 6% of Irish businesses have a formal Brexit plan in place, AIB reports

Just 6% of Irish businesses have a formal Brexit plan in place, AIB reports

Just 6% of Irish businesses have a formal Brexit plan in place, according to a new report.

This is despite 70% saying that Britain's exit from the European Union will have a negative economic impact.

The AIB Brexit Sentiment Index for the second quarter of 2018 also shows that 58% of SMEs in Ireland believe Brexit will have a negative impact on future business.

Just 5% of businesses in Northern Ireland have a plan in place.

The report found that businesses in the food and drink sectors are most likely to have a plan in place (11%), followed by tourism (9%) and transport (7%).

AIB’s Brexit Sentiment Index conducted by Ipsos MRBI is a quarterly survey of more than 700 SMEs in the Republic of Ireland and Northern Ireland that assesses the attitudes of SME business leaders on Brexit and the impact on their businesses.

Catherine Moroney, Head of Business Banking AIB said: “Manufacturing, retail and tourism sectors continue to report the most negative Brexit sentiment. The results also indicate that larger businesses are more likely to have a formal Brexit plan.”

“It’s critical to plan for the worst now. When businesses do seek financing, one of the key questions we in AIB ask them about is their business’ Brexit readiness and the potential impact Brexit may have on their business in a harder line Brexit scenario," she said.

AIB Chief Economist Oliver Mangan said: “A key point to note is the relative stability in these readings over recent surveys. This is reflective of the lack of any major new developments over the survey period in the Brexit process.

"While a somewhat limited proportion of SMEs are reporting a negative impact on business now, the lack of progress and clarity in relation to Brexit and the uncertainty is also evident in the survey results."

"Indeed, in ROI, the negative headline reading is being driven by concerns regarding the impact of business in the future and on the wider economic impact,” he said.

The Index is based on telephone interviews conducted by IPSOS MRBI from its call centres in Dublin and Belfast among 500 SMEs in the Republic of Ireland and 200 in Northern Ireland, operating in a number of key defined sectors.

Digital Desk

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