The impending doom of Brexit is still hanging over many SMEs heads, particularly with regards to expanding and trading globally and boosting profitability.
Recent figures released by accountancy firm Moore Stephens have revealed that only 6% of SMEs that were polled felt that the government is listening to and taking on their concerns about leaving the EU.
This statistics suggest that the Government have their work cut out for them when it comes to convincing SMEs that leaving the EU will be beneficial to them.
So, what are the benefits and drawbacks of leaving the EU for SMEs?
Benefits
The chance to expand into more vibrant marketplaces
Some think that Brexit will enable UK businesses to diversify into make dynamic markets operating outside of the EU. In China and India for example, growth rates are still strong and significant even despite recent slowdowns in trading.
More talented workforce
Brexit could help your business in terms of accessing a wider and more talented staff pool. At present, the freedom-of-movement obligations mean that there are limits on non-EU immigration. Liberating these obligations could mean that it would be easier for your SME to recruit high-calibre staff from non-EU countries.
A reduction in red tape
A lot of the EU regulations that are currently in place burden SMEs, particularly in terms of time consuming bureaucracy that can impede on innovation and growth. Leaving the EU may mean that the government is in a position to roll back some of these regulations.
Drawbacks
Slowing down of trade within the EU
Membership of the EU means that UK SMEs can export to Europe easily and the lack of import taxes also allows businesses to operate at the same level as companies across the Continent. Leaving the EU would negatively impact on both of these factors.
UK investment
There is speculation from those who are against Brexit that leaving the EU could damage the UK’s reputation as one of the world’s leading financial centres, which could in turn result in a decline in UK investment across the board.
The economy and jobs
Figures from 2000 have revealed that around three million UK jobs are linked to trade within the UK. Exiting from the EU may mean that SMEs will struggle in terms of a lack of EU residents moving to the UK in pursuit of work.