UK's small and medium businesses (SMB) are not really fond of the idea of Great Britain leaving the European Union, UK’s commercial insurer, RSA, says in a recently released report.
According to its study, many UK's businesses are EU-bound, struggling to expand beyond the borders of the European Union. Leaving the EU, a movement popularly known as Brexit, could leave SMBs stranded.
The study says that 82 per cent of SMBs see the EU market as important to their future growth, with 52 per cent saying it’s VERY important. The uncertainty over Brexit is keeping 56 per cent of companies from growing, and 55 per cent say the Government is not supportive in dealing with Brexit.
The main barriers to these businesses expanding beyond the EU are red tape (excessive regulations) for 62 per cent, lack of funding for 58 per cent, lack of access to information for 53 per cent and the lack of international experience for 61 per cent.
“The UK’s SMEs are stuck in the gravitational pull of the EU. Current Government export support isn’t working for our smaller businesses, who are struggling to trade beyond Europe,” said David Swigciski, SME Director at RSA.
“Not only are our SMEs missing out on growth markets, they face significant risk from uncertainty over a possible Brexit and our future relationship with Europe. SMEs are telling us that the perception of the UK’s small businesses as corner shop owners is outdated and damaging. We need a 21st century framework for the 21st century SME. Government policy needs to be updated to support our internationally-minded business community if SMEs are not to be caught between the rock of the BRIC wall and the hard place of Brexit uncertainty in their core EU markets.”