The Lloyds Bank - National Business Awards UK 2017

13th November 2018


European uncertainty challenges SMEs

European uncertainty challenges SMEs

29 Oct 2015 by: Guy Rigby, Head of Entrepreneurial Services, Smith & Williamson

European uncertainty challenges SMEs

Tuesday 20 October 2015

“Nearly one third of UK SMEs which responded to Smith & Williamson’s quarterly Enterprise Index survey have delayed their investment plans following problems in Greece and subsequent uncertainty in Europe,” says Guy Rigby, head of entrepreneurial services at Smith & Williamson, the accountancy, investment management and tax group.

Rigby continued: “Ongoing macro-economic issues, such as a potential Grexit and a lack of confidence in the global economy, as well as national challenges, such as less friendly dividend tax rules introduced in George Osborne’s Summer Budget, appear to have contributed to a drop in the Smith & Williamson Enterprise Index to 114.4, five points lower than its record high of 119.4 three months ago,” explains Guy.

"The real question is whether business confidence will continue to decline as we approach the end of 2015"

“Changes to dividends, the introduction of the new National Living Wage and a less generous than expected annual investment allowance in George Osborne’s first Conservative Budget were not well received by business owners. Whilst still remaining high, at 70%, belief in the Government’s promise to support private enterprise dropped 10% as a growing number of SME owners felt they lacked support.”

Other factors undermining business confidence include the prospect of a US and UK interest rate rise, a potential 2016 EU referendum and volatility in global stock markets, sparked by China amidst concerns around global growth.  These issues, which have been well aired in the press, are trickling down and undermining confidence amongst UK SMEs.  The real question is whether business confidence will continue to decline as we approach the end of 2015.”

Help to export

“87% of SME owners thought the government should provide more support to help businesses export,” says Stephen Drew, head of international services at Smith & Williamson. “Many of our clients recommend the official government websites as they are said to be both highly regarded and trusted.  However, like many large websites that have existed for a while, the SME section of has been said to have become difficult to navigate, untidy and complicated. Therefore, an overhaul and promotion of the information in a clear and centralised information portal would be beneficial.

“Many are unaware that research and development (R&D) activity undertaken by UK SMEs to enable them to export would attract R&D tax credits. This can be helpful as part of a suite of financing options that will make it easier for businesses to trade internationally.”

The rise and rise of crowdfunding

“Over 90% of participants felt that, should their businesses require investment, they would consider using crowdfunding as a means to secure it.  This demonstrates an incredible awareness of crowdfunding, a financing technique which barely existed five years ago.  A recent Government consultation surrounding the use of crowdfunded investments in ISAs highlights that this is being considered as an increasingly important way of raising funds.”

About Smith & Williamson’s Enterprise Index:

There were 151 participants from the UK’s SMEs who took part in this quarter’s survey.  It ran from mid-July through to the end of September.

Contact us

For more information contact Guy Rigby, Head of Entrepreneurial services at Smith & Williamson.

Guy Rigby
 Head of Entrepreneurial Services
 Smith & Williamson
 t: 020 7131 8213



Headline sponsor


Award sponsor


Award Sponsor


Award Sponsor

London stock

Award Sponsor


Award Sponsor


Awards supplement provided by

Awards supplement provided by The Times

Official Travel Partner


Official Executive Search Partner

The Grichan Partnership

Official Partner



Official Partner

Charities Aid Foundation

Official Partner

The Supper Club

Official Partner


Official Media Partner

businessmatters logo 2018

Official Media Partner


Official Media Partner


Official Media Partner