A third of UK SMEs think that the British pound will be replaced in the next 20 years and almost half (41%) of the small business owners surveyed believe that the Euro-zone will cease to exist in its current form.
The research, carried out by currency specialist Moneycorp, found Greece topping the list of countries expected to leave the single currency, followed by Ireland. A surprisingly high 33% of SMEs have gone so far as to put contingency plans in place in case the euro disappears.
Despite the Government’s hopes for an export-led recovery based on a weak pound, more than two-thirds (68%) of small business owners claim that they have not seen any such rise in export sales.
Currency fluctuations are cited as the biggest hurdle for operating overseas (24%), followed by language barriers (19%). Almost half (44%) of those questioned are unclear about the possibility of the pound strengthening against other currencies in the next six months.
Chris Redfern, currency dealer at Moneycorp, said: “The turmoil that has continued to plague the Euro-zone for the last two years, combined with a fluctuating pound has led to uncertainty among small business owners about the future of the established currency arrangement. Planning ahead, establishing forward contracts and getting the right advice will be key in steering SMEs through future foreign exchange storms.”
