THE EU single market remains a top priority for the majority of small businesses in the UK, according to a new report.
The research by the Federation of Small Businesses entitled 'Keep Trade Easy: What Small Firms want from Brexit' found that 63 per cent of those surveyed felt the single market was a top priority.
Trade with EU markets is an issue especially pertinent to small businesses located in Northern Ireland, which not only trade with, but share a border with the Republic of Ireland.
The report also found that over half of respondents find the EU single market easier to trade with than non-EU markets.
On cost, 45 per cent of current exporters and over half 53 per cent of current importers find trading with the EU single market cheaper than trading with non-EU markets.
One in four exporting small firms said would be genuinely deterred from trading with the EU should any tariff – no matter how low – be introduced.
A third of small business exporters would be deterred from trading with the EU if a tariff rate between two and four per cent was introduced.
Wilfred Mitchell, the FSB’s policy chairman for Northern Ireland, said it was vital that Stormont representatives focus on representing small businesses in the north during any negotiations.
"Compared to larger companies, small businesses typically work to tighter margins with limited resources, meaning changes to the trading landscape will hit them disproportionately hard," he said.
"Our new research report reveals the true small business wish list for future trade deals. Small firms trade with countries based on ease, cost and value and any future trade deal must deliver on these key aspects both with the EU single market and non-EU markets.
"While the top non-EU countries of choice for trade deals include the US and China, the reality is that the EU is still a crucial market for smaller firms and cannot be undervalued."
