A BREXIT funding 'black hole' could threaten Northern Ireland's growth and productivity the Federation of Small Businesses (FSB) has warned.
According to the group's latest research report 32 per cent of SMEs in the north have applied for EU funding schemes, the highest proportion of any UK region.
In the absence of this support FSB believes it could have "serious implications" on the creation and survival of small businesses in Northern Ireland.
FSB Northern Ireland policy chair Wilfred Mitchell said it is crucial that financial support for SMEs continues.
“Many of our business support schemes receive significant financial support through EU funding, and it is crucial for the local economy that this continues as Northern Ireland struggles to catch the rest of the UK in the average percentage of business births (registrations) per year. A shock to the business support landscape will have serious implications for small business creation and survival, as well as efforts to improve productivity and rebalance the economy."
"Small businesses across the country are staring into a business support black hole from 2021, therefore an early review of the current provision of business support funding to identify those funds that are from the EU is crucial," he added.
The new 'Reformed Business Funding: What small firms want from Brexit' report finds that amongst UK small businesses that have applied for such schemes, the majority believe EU funding has had a positive impact on their business (68 per cent) and local area (64 per cent ).
Furthermore, the research indicates that the benefits of EU funding are even broader, with many other businesses indirectly gaining from wider economic growth.
