70 percent of smaller IT businesses don't see Brexit as a threat

Despite the widespread predictions of Armageddon that preceded June's vote on the UK leaving the European Union, new research reveals that a majority of companies in IT and computing don't see Brexit as a threat.

The research by commercial insurer RSA shows that 70 percent of small and medium businesses in IT and computing don't see Brexit as a risk. Of those surveyed 43 percent say that leaving the EU will have no impact at all, and 27 percent say it will have a positive effect on their business.

There are regional differences too, eight out of 12 regions are positive about Brexit, with the North West and East of England being most positive and Wales the most negative.

However, the report does identify other risks, for example 29 percent of SMEs in the IT and computing sector say they would go out of business if faced with an unexpected bill of £50,000. The top three risks to SMEs are identified as economic uncertainty, increasing market competition, and cash flow problems, but 49 percent of SMEs in the IT and computing sector are not insured against any of these three risks, which is slightly lower than the national average of 58 percent.

The threat of cyber attacks is one of the most prominent emerging risks for businesses. But while government figures show that two thirds of large businesses and three quarters of SMEs have experienced some form of cyber attack, RSA’s research finds only nine percent of businesses have cyber protection cover in place, and only 26 percent say they are concerned about the threat posed by a cyber attack.

"The technological landscape is changing at an unprecedented rate bringing businesses both new opportunities and new threats," says Russell White, schemes and deals Director, regions and SME, Commercial Risk Solutions at RSA. "Despite pushing these technological advancements, SMEs are also being left behind the curve when it comes to securing themselves against the risks presented by cyber development. It is interesting to learn that only 12 percent of businesses in the IT and computing sector have cyber cover, despite them understanding the landscape".

You can find more detail in the the full report which is available on the RSA website.

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