Comment from VentureFounders on the Federation of Small Businesses report


Comment from VentureFounders on the Federation of Small Businesses report

"The news from the Federation of Small Businesses (FSB) report that there is a marked divide amongst small businesses in the UK as to whether or not we should stay in the EU is a concern, especially since the report found that less than half of the firms surveyed felt that they fully understood the implications of a Brexit.

“Unsurprisingly, companies that rely on EU imports and exports were more likely to vote to stay in, while those who did not saw remaining in the EU as less beneficial. However this “what’s in it for me?” mentality could be very damaging to the UK as a whole. Businesses need to look at the wider picture and understand that the impact an exit from the EU could have on other businesses will hit the UK economy as a whole, having a knock-on effect on their business too. Small businesses need to consider their network and where they fit into a supply chain – often businesses trading only within the UK will actually be supplying larger firms that do trade internationally and these companies will have their profits hit by the trading restrictions associated with not being a member of the EU.

“This group also needs to consider the impact on their own growth, whether they trade internationally or not. EU passporting makes it possible to open up cross-border investor pools from Europe, which can inject capital into their businesses. Looking to future expansion, being able to easily establish a presence in other EEA Member states gives companies the clarity they need to grow their business into these markets when the time is right.

“More needs to be done to give small businesses access to the facts and figures they need to make an informed decision on the EU referendum and how it will not only affect them but the wider UK economy.”