Irish firms more worried about Brexit than British counterparts

Irish businesses are considerably more pessimistic about Brexit than their UK counterparts.

According to a PwC survey, some 82 per cent of Irish family-run firms said they expected the UK's exit from the EU to have a negative impact on their business compared with just 38 per cent in the UK.

The contrasting outlook reflects the high proportion of Irish companies currently exporting into the UK market.

Despite the concern, the survey of over 2,800 businesses revealed only 24 per cent of Irish firms had taken concrete measures in the wake of the UK’s vote.

Family-owned businesses represent about 75 per cent of Irish firms; they also employ more than 50 per cent of workers here.

While the PwC study noted the large number of Irish firms reporting strong growth, it highlighted the lack of medium- to long-term planning as a key failing.

No succession plan

It found that more than half of Irish business owners had no succession plan in place. “There is no point in having detailed plans for business continuity, if the single most significant risk to this is not addressed,” the study said.

The research also highlighted a paucity of planning in other areas such as diversification, digital and cyber security, suggesting these factors were more likely to limit growth than economic headwinds like Brexit.

Some 94 per cent of businesses expecting double digit growth anticipated it to be achieved through expanding their core business in existing markets.

Enterprise Ireland has pinpointed market diversification as the best way of dealing with Brexit.

“While some family firms are managing strategic planning well, many are caught between the deluge of everyday issues and the weight of inter-generational expectations,” the PwC report said.