Economy

Micro-Businesses Fear Brexit Slump

Just 7% said leaving the EU would be good for their business.

Share this article

Share this article

Just 7% said leaving the EU would be good for their business.

Economy

Micro-Businesses Fear Brexit Slump

Just 7% said leaving the EU would be good for their business.

Share this article

Two-thirds of freelancers and micro-businesses in the UK think that Brexit will damage the economy, while 60% want a second referendum on EU membership, research out today reveals.

In a poll of more than 500 micro-business owners carried out by cloud accounting software company FreeAgent, more than two thirds of respondents (66%) said Brexit would have a negative impact, while just 13% said it would have a positive impact.

The survey quizzed people who run businesses with fewer than 10 employees - a 5.2 million-strong group that comprises around 95% of the UK’s total number of businesses.

Among the other findings, 60% of respondents said they would be in favour of holding a second Brexit referendum, compared to just 26% opposing the move.

Just 7% of micro-business owners said Brexit would have a positive impact on their business, compared to 38% who said they thought leaving the EU would have negative consequences for them.

Ed Molyneux, CEO and co-founder of FreeAgent, said: “The economic impact of major changes like Brexit tend to be only measured in terms of how they will affect large corporations and SMEs. But there are also millions of smaller enterprises and freelance businesses that will be impacted when the UK leaves the European Union.

“Our research paints a pretty stark picture about how these business owners currently view Brexit. Far from being optimistic, the majority are actually fearful that leaving the EU will have dire consequences for the economy - and many believe that Brexit will also be bad for their own businesses.

“The fact that nearly two thirds of respondents are also in favour of a second referendum over the UK’s withdrawal from the EU should be cause for concern as we seemingly continue on the path towards a hard Brexit.

“Given that micro-businesses comprise 95% of the UK’s total number of businesses, there is clearly a significant section of the economy that is feeling anxious about the post-Brexit future. I hope that the government keeps the concerns of these micro-business owners front of mind and makes sure that they are fully informed throughout the whole of the Brexit process.”

Related Articles
Get news to your inbox

Micro-Businesses Fear Brexit Slump

Share this article