Three quarters of small businesses in the UK are looking to expand within the next two years, showing a generally optimistic mood in the business sector post-Brexit.

73 percent of businesses with over five employees have plans to grow dramatically or moderately over the next two years, according to a new report by Albion Ventures. However half of the 1,000 SMEs surveyed said that finding skilled staff to fill positions is one of the biggest challenges, an issue that may grow worse post-Brexit. Businesses in the manufacturing, construction, medical and healthcare sectors are the most affected, relying on candidates with job-specific training to fill the roles.

On a sector basis, manufacturing companies remains the most bullish about growth and the most relaxed about Brexit. Small businesses are largely split on the impact of Brexit, with 36 percent unworried by the referendum result, and 41 percent expecting it to be a hindrance. However, this opinion varies greatly depending on demographic – those in London are the most concerned, and over half of businesses owned by Millenials expect Brexit to cause problems in the long run.

Patrick Reeve, Managing Partner at Albion Ventures, commented on the report: “Against a backdrop of profound change, one element that has remained reassuringly unchanged is the optimism underlying the UK’s small businesses. Firms are looking to grow their headcount and productivity is on the increase. The biggest barrier to growth, finding skilled staff, is generated by success rather than failure.

“The downside is that the economy is coming under capacity constraints at a time of considerable political uncertainty. While many of the pressures on growth we have seen in recent years have eased, the skills that enable us to compete are in short supply.”

12/10/2016