Payment service provider Mollie recently surveyed on the preparedness of EU and UK merchants ahead of Brexit. After the research, the firm announced that the companies are more ready than initially expected.
The study showed the difference between UK-based merchants and their EU counterparts. It also reveals the challenges and opportunities expected as the Brexit day approaches when the transition period will end on December 31.
The result of the survey shows a positive outlook for UK-based companies who are expected to face certain cross-border challenges when the UK finally completes its exit from the EU. However, the surveyed companies also expressed optimism that they are capable of adapting to the challenges.
The Brexit transition will not bring more challenges
UK firms are not the only companies to be concerned, but EU-based firms as well. The surveyed EU firms feel not completely prepared but the majority of them believe that the final transition phase of Brexit will not bring new challenges.
However, according to the survey, both the EU and UK businesses admitted that Brexit has led to a focus from international commerce to more domestic business activities.
Another finding in the survey reveals that British SMEs are going strong, despite the challenges. 32% of EU firms and 42% of UK companies expect to take care of any Brexit-related challenges before the end of 2021.
UK firms a bit more optimistic
Additionally, EU businesses are a bit optimistic about the propensity for a better business environment after Brexit. But the UK businesses are feeling more optimistic when they were asked about addressing new challenges.
When asked about the level of their readiness towards the December 3i1 Brexit date, 69% of them said they are ready, with many adding that SMEs will be stronger using a more personalized and regional approach.
While only 18% of EU merchants said Brexit encourages them to focus on more productive areas of their business such as e-commerce, the UK merchants are more optimistic with 22%.
When asked about their level of planning, more than a third of the respondents said they had not planned for the challenges coming ahead. Another one-third said they are prepared and well equipped to meet the challenges.
A small percentage said they are not expecting any issues. The survey revealed that many of the UK-based firms do not expect any major issues by December 31.
