Firms’ fears over lack of growth

Just one in eight (13%) smaller firms in the UK believe Brexit will deliver growth opportunities for their business, according to a study by cloud accounting software company FreeAgent.

Two-thirds (66%) of respondents doubted that any trade agreement will be reached between the UK and the European Union by the end of 2020.

Nearly two in five small business owners (38%) said there would “never” be any advantage from leaving the EU, while almost one in 10 (9%) said it would take at least 10 years to see any benefit.

Just 16% said they believed some kind of benefit would happen within two years, which FreeAgent said suggested small business owners and the self-employed had little confidence in the UK’s Brexit strategy.

FreeAgent co-founder and chief executive, Ed Molyneux, said, “In the past few months there has been less focus on Brexit by small businesses, many of whom have been more concerned with basic survival during the Covid-19 pandemic.

“However, with the deadline for agreeing a post-Brexit trade arrangement rapidly approaching, the sticky issue of leaving the EU is likely to be thrust back into the headlines soon.

“Brexit remains a major issue for small and medium-sized businesses.

“While many do not directly trade with the continent, smaller enterprises will still be significantly impacted by supply chain issues and economic volatility that will inevitably arise at the end of the transition period – whether the UK and EU agree a deal or not.”

“Impacted by supply chain issues and economic volatility”