New research from Intuit QuickBooks, launched to coincide with its small business webinar with European Parliament, shows that a quarter (26%) of small businesses don’t think they need to prepare for the end of the Brexit transition period at all.

Today’s findings show there is still confusion among small business owners around trading and travel rules, with only one in three (34%) aware that changes will take place on the 31st December 2020. With many entrepreneurs having to focus solely on adapting to the seismic impact of COVID-19 on their business, two thirds (67%) of small business owners admit they don’t know when changes are taking place or thought they were due at a later date in 2021.

The end of the Brexit transition on the 31st December will impact small business owners in a number of ways, including the movement of people and goods, taxes, safety standards and personal data.

Despite this and with less than a month to go before the deadline, the research shows that nearly half (46%) of SMEs think Brexit will have no impact on their business and an additional 14 per cent say they are not well prepared to continue operating without disruptions.

Previous research from QuickBooks revealed the area small businesses are least clear about is the impact on trade – with around a quarter (23%) admitting they don’t understand how Brexit will impact their imports and exports - closely followed by state aid (21%) and the transfer of personal data (19%).

Speaking at an Intuit QuickBooks-hosted virtual event on 7th December – focused on EU initiatives to boost small business growth post COVID-19 – Angela Eagle, MP, urged small business owners to utilise digital tools to take away some of the workload. She added that digitising services and sales can widen the potential customer base for a small business and allow them to make the transition to global.

Vice President of the European Parliament, Othmar Karas, said: 

“SMEs are essential for competitiveness, prosperity and technological innovation. At the same time, during COVID-19 SMEs are suffering from declined revenue and severe knock-on effects. Our common goal must be to support SMEs during the crisis. We will all be more successful if we work closely together with our partners, even beyond the end of the Brexit transition.”

James Sibley, Head of International Affairs at the Federation of Small Businesses, said:

“Since the Brexit referendum, we have seen small businesses increase exports to alternative markets such as the US. However for those SMBs that export and import, the largest market remains the EU, and those that only trade with EU countries are struggling to prepare for the disruption in January. Clear, concise information on how to prepare for the transition will be crucial for small businesses.”

The Intuit QuickBooks-hosted event offered a discussion of EU initiatives aimed at boosting small business growth post-coronavirus, and how businesses across Europe can tackle trade barriers after the Brexit transition. Keynote and panel speakers at the event, included:

• Thomas Bareiß, Parliamentary State Secretary at the German Federal Ministry for Economic Affairs and Energy

• Othmar Karas MEP, Vice-President of the European Parliament

• Ismail Ertug MEP, European Parliament, S&D Vice-President and Spokesman for the Digital Agenda

• Caroline Mischler, Head of the European and International Mission at Directorate General for Enterprises, French Ministry of Economy and Finance

• Angela Eagle MP, UK Houses of Commons and member of the Treasury Committee

• James Sibley, Head of International Affairs, Federation of Small Businesses.

Intuit QuickBooks’ Director of Corporate Affairs, Rob Burlison said:  

“We are delighted that the German Small and Medium Enterprise Commissioner and Vice Presidents from the European Parliament were able to join us and answer important questions from small business owners. Small businesses are the backbone of the European economy, accounting for 99% of all businesses in the EU, and many of them will have never faced an environment as tough as this.

“After such a challenging year, being unprepared for other possible disruptions to business will lead to further risk and hamper much-needed growth and resilience. With only a month until the deadline, businesses need to focus on the important things – staying operational and getting paid. Using the right digital tools and resources is crucial at this time and will ensure they can remain focused on running and growing their business.”