Small businesses speak out on Brexit

27 January 2017


UK

The Federation of Small Businesses (FSB) this week published it initial findings from a six-month research programme on the business impact of Britain leaving the European Union. The research underlines the importance of the pledge to secure the greatest possible access to the EU single market.

The FSB says the future trading environment will change, with the UK set to leave the single market and the UK Government seeking an ambitious Free Trade Agreement (FTA) with the EU.

One in three (32%) small businesses are involved in overseas trade as an exporter and/or importer, with the vast majority trading with the EU single market (92% of exporting small firms and 85% of importing small firms). As a result of Brexit, one-third (29%) of exporting small firms, regardless of destination, expect their level of exports to decline, while one in five (20%) expect it to increase.

The difference is starker for current importers, where one-third (31%) expect to see a decrease compared to seven per cent that expect to see an increase. 

FSB national chairman Mike Cherry said: “As the UK leaves the single market any new agreement must maintain the current ease of trade with the EU and not lead to additional administrative or financial burdens. For a truly global Britain, we need the Government to enhance specific support for small exporters to reach new customers and to negotiate ambitious UK-specific trade deals with large and emerging markets.”

FSB research reveals that one in five (21%) small business employers employ non-UK EU citizens, with the majority of these employees already residing in the UK with the right to work here. In addition, almost half (47%) of small businesses that employ EU citizens predominantly rely on mid-skilled workers.

“FSB research clearly shows the importance small businesses place on being able to access the skills and labour they require, particularly mid-skilled workers, who are non-UK EU citizens recruited here in the UK,” Cherry added. “Mid-level skills are vital for small firms, and businesses call for the right to remain for those EU citizens in the workforce here.

“The design of any future immigration system must ensure demand can be met, twinned with a supply-side focus on improving UK education and skills.”

FSB’s Brexit research series will include four in-depth reports on what small businesses want from Brexit. These reports will individually address access to markets & trade, skills & labour, EU funding & business support, and the future of regulation.



Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.