SMEs evenly divided on EU referendum

SMEs evenly split
SMEs evenly split

SME’s are split when it comes to whether leaving the EU would have a negative impact on their businesses, with 46% in favour of a British exit from the EU and 46% wanting to stay and just 8% undecided either way. This is according to Loc8 Commercial, the leading property broker. The company invited 500 UK small business owners to answer simple questions on the Brexit argument.

Will the UK be better off out of the EU?

When asked “would the UK economy be better off if the country left the EU?” businesses responded by saying yes, with just over 50% compared to the 43% that said no.

Do you think a recession is more likely of the UK left the EU?

The survey had some mixed results which could support the theory that many people are simply not sure what impact Brexit will have on the wider economy. For example, 38% of businesses thought a recession would be more likely despite more than 50% agreeing Brexit would be good for the UK economy.

Would there be job losses if the UK left the EU?

Brexit campaigners have said that there could be some short term growth issues but the long term forecast would be generally positive. Ian Duncan Smith said he believes the downward impact on wage growth is due to European migration, something that has been mentioned throughout the debate. But what is not clear is the impact of wage inflation on UK jobs if the country votes to leave, especially as productivity is not rising at the same rate as other European countries according to the Office of National Statistics.

The Loc8 Commercial survey found that just under 40% of UK businesses think there would be job losses if the UK voted to leave, with 31% feeling confident there would not be any immediate increase in unemployment figures. This question had one of the highest levels of respondents who were unsure, with just over 30% not clear either way.