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Small firms split on fears and hopes over ‘hard Brexit’ says study Small firms split on fears and hopes over ‘hard Brexit’ says study
(about 1 hour later)
Nearly a third (29%) of small businesses expect their level of exports to fall when the UK leaves the single market, research from the Federation of Small Businesses (FSB) has revealed.Nearly a third (29%) of small businesses expect their level of exports to fall when the UK leaves the single market, research from the Federation of Small Businesses (FSB) has revealed.
The research, which comes a week after Theresa May laid out her plans for a hard exit from the EU, also found that importers expect to be affected, with 31% predicting volumes to decrease. The survey was sent to the FSB’s 170,000 members with over 4,600 responses. The research, which comes a week after Theresa May laid out her plans for a hard exit from the EU, also found that importers expect to be affected, with 31% predicting volumes to decrease. Surveys were sent to the FSB’s 170,000 members, with more than 4,600 responses.
Of the exporting businesses surveyed, 92% currently trade within the EU and more than two thirds (69%) also import.Of the exporting businesses surveyed, 92% currently trade within the EU and more than two thirds (69%) also import.
However, many small businesses are more optimistic, with 42% of respondents believing that leaving the single market will have very little or no change on their expected level of exporting. More than half (55%) of importers said they do not expect significant disruption.However, many small businesses are more optimistic, with 42% of respondents believing that leaving the single market will have very little or no change on their expected level of exporting. More than half (55%) of importers said they do not expect significant disruption.
Growth predictions are also high despite the Brexit vote, with 70% of respondents expecting to grow in the next 12 months.Growth predictions are also high despite the Brexit vote, with 70% of respondents expecting to grow in the next 12 months.
This resilience may be explained by evidence that British entrepreneurs are already realising opportunities beyond the European trading bloc. Of the small businesses that took part in the FSB’s study, 78% trade outside the single market and 72% trade with both.This resilience may be explained by evidence that British entrepreneurs are already realising opportunities beyond the European trading bloc. Of the small businesses that took part in the FSB’s study, 78% trade outside the single market and 72% trade with both.
The agreement that Theresa May’s government negotiates with the EU after article 50 is triggered – the process of which has been thrown into disarray yesterday after the supreme court’s decision – has been the subject of much speculation.The agreement that Theresa May’s government negotiates with the EU after article 50 is triggered – the process of which has been thrown into disarray yesterday after the supreme court’s decision – has been the subject of much speculation.
But, echoing the views of the chair of the Commonwealth and Enterprise Investment Council, 42% of small business owners say tariffs play no role in deciding where they will export to. Slightly more – 47% – state that tariffs are considered. Non-trade barriers, such as licensing or packaging requirements, are seen as more important.But, echoing the views of the chair of the Commonwealth and Enterprise Investment Council, 42% of small business owners say tariffs play no role in deciding where they will export to. Slightly more – 47% – state that tariffs are considered. Non-trade barriers, such as licensing or packaging requirements, are seen as more important.
New immigration and travel restrictions will also be a concern across the small business community. Whether or not they import or export, almost a third (30%) of small businesses say they have benefited from free movement in the past year. This includes making business trips and working with individuals and companies in the single market. Of those entrepreneurs that employ staff, 21% hire EU citizens, the majority (47%) of whom are mid-skilled and provide relief for those facing local skills shortages.New immigration and travel restrictions will also be a concern across the small business community. Whether or not they import or export, almost a third (30%) of small businesses say they have benefited from free movement in the past year. This includes making business trips and working with individuals and companies in the single market. Of those entrepreneurs that employ staff, 21% hire EU citizens, the majority (47%) of whom are mid-skilled and provide relief for those facing local skills shortages.
Mike Cherry, chair of the FSB, said: “We know that [businesses] who export are more likely to survive, innovate and grow. 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.Mike Cherry, chair of the FSB, said: “We know that [businesses] who export are more likely to survive, innovate and grow. 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.
“We also see future opportunities to revamp future funding for business support and access to finance, and for a lighter-touch regulatory system that promotes growth and productivity.”“We also see future opportunities to revamp future funding for business support and access to finance, and for a lighter-touch regulatory system that promotes growth and productivity.”
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