MORE than three in ten small and medium-sized enterprises in Scotland are changing strategy because of Brexit, a survey shows.

Albion Capital’s survey also shows 46 per cent of SMEs north of the Border believe exiting the European Union will hinder companies looking to enter new markets. Only 29 per cent think that Brexit will help on this front.

The survey shows 31 per cent of SMEs in Scotland, defined as those with fewer than 250 employees, are changing strategy because of Brexit. This is slightly below a corresponding 35 per cent for the UK as a whole.

Meanwhile, the survey signals Scottish SMEs planning to enter new markets in the next two years are prioritising domestic markets, cited by 27 per cent of respondents, over expansion in EU markets, highlighted by 14 per cent of firms.

In terms of growth ambitions for the next two years, 58 per cent of Scottish SMEs believe they will grow, 32 per cent think they will stay the same size, and none anticipate they will be forced to downsize.

Meanwhile, five per cent believe they will exit the market and the remainder did not choose any of the answer options.

Patrick Reeve, managing partner of Albion Capital, said: “This year’s report reveals an interesting disparity between businesses which are optimistic or pessimistic on the opportunities available to them in the post-Brexit environment.

“SMEs are understandably anxious over the decision to leave the EU, which has cast doubt upon many growth plans, including expansion into new markets, the development of products and services, and staff recruitment.”