Brexit perspectives: small business owners

We speak to two small business owners about how leaving the EU could affect them and their businesses.

Small businesses have been a key focus of the EU referendum.

The Remain side argue that keeping trade open is good for business on an international level, while Brexiters want to do away with what they see as endless red tape.

For those that are in-between, the problem is a lack of information. A substantial 52% of members of the Federation of Small Businesses (FSB) don’t feel informed about the EU referendum, according to the organisation's own research. The research was carried out in February this year, but how do they feel now that we’re so close to judgement day?

We speak to Murray Boss and John Hall about what a Brexit would mean for them and their businesses.

Remain

“Brexit will reduce trade for everybody”

John Hall
Director of M.B.O (Tools) Ltd

John launched M.B.O (Tools) Ltd from Haverhill 20 years ago after he became a househusband. His company imports tools and sells them on to other businesses, some of which are based in mainland Europe. 

“I started up on my own because it worked well around taking care of the babies, but then big companies started ringing me up asking for supplies, including importers from France.

Although my business is very small (just me with occasional assistance from business associates), I import a fair amount of product from the US and sell it into the UK and the EU.

I did some entrepreneurial work in Malta on family trips when my in-laws retired there 15 years ago. They’re much more people-oriented in Malta and they trust me because I go and see them two or three times a year­­ – 15%-20% of my business is over there. But the Maltese are desperately worried about us going.

I think if we leave, I would be wanting to retire before any trade agreements are sorted and that the business would suffer greatly in the meantime. The fall of the pound vs the [US] dollar has already caused money troubles.

If Canada didn’t sort out a trade deal [with the EU] for eight years, then what will happen with us? There’s a lot of uncertainty when it comes to customs agreements, shipment fees and form differences like duties, taxes, etc.

You don’t know what’s going to happen when you import from the States. It’s just not as efficient as Europe.

There’s a lot of nonsense going around about red tape, though most of it originates here. The Government gets money back from Europe too but it’s often not taken into calculations.

A lot of Eastern Europeans have come to Haverhill. They’re friendly, they’re happy and they fit in. Immigration is a real Bogeyman thing: they’re not here to get benefits.

There’s no reason we couldn’t strengthen trade relations with both the commonwealth and Europe, as long as we have products and services the world wants to buy.

I perfectly understand it if a small business is just buying or selling within the UK – it won’t affect them, at least not in the short term. Generally there has been a slight downturn in business since the vote was announced, with people waiting to see what will happen.

A Brexit will reduce trade for everybody. It doesn’t need to happen.”   

Leave

“There’s just too much red tape”

Murray Boss
Proprietor of ACE TV

Murray runs his all-terrain vehicle business from Herefordshire, dealing with international companies outside Europe. Many of his customers work in the farming industry and he employs local workers and offers apprenticeships to people in the area.

“I work with Yamaha and Suzuki which are Japanese, Polaris which is North American and Logic, which is based in the UK.

In a lot of instances, management of these companies was also UK-based, but about three-five years ago manufacturers switched to European decision-making bases, taking management decisions away from the UK.

These companies have become less efficient since they moved to Europe. For example, you’d ask a question and have to wait several days for an answer, whereas before they could have got back to you on the same day.

Plus the stock is abysmal so they can’t supply us with as much, which obviously affects us financially.

Prices for parts have doubled, which I have to pass on to my customers. They're not happy.

Business is faster-paced in the UK. Europe has a lacklustre way of carrying out business, which is stopping my company from growing.

There’s just too much red tape: in Europe it’s two people doing the same job. With Polaris and Yamaha I order direct from the States and it’s much more efficient.

Immigration frightens me. The country is too full of people. I employ workers in the community and have recently taken on local apprentices. I don’t know where immigrants would fit into my business.

I tend to sell to farmers. We’re a big family – they put the food in my fridge. They get payments from the European Economic Community, but they’d rather not get the them if it meant they wouldn't have to put up with the bureaucracy.

Because of the Common Agricultural Policy, farmers are discouraged. Very few won’t vote to leave.

People don’t care where something is made, as long as it’s good quality. That’s the bottom line.”

Do you run a small business? How do you think a Brexit will affect you? Let us know in the comments section below or send your story to uknews@lovemoney.com.

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