South: BDO survey reveals two thirds of mid-market firms back staying in EU
A survey by accountancy and advisory firm BDO LLP of the UK’s mid-sized companies (those with revenue of between £10 million and £300m) shows 65% are in favour of staying in Europe under the new terms following the PM’s negotiation with the European Council.
The poll – which surveyed 632 British mid-sized companies – found that 70% of the mid-market believed that leaving the EU would make it harder to run a successful business.
The mid-market is politically and economically important to the UK. While making up only 1% of all UK companies, these firms create one in four private-sector jobs and are responsible for around one third of the UK’s total revenue (over £1 trillion a year).
Despite being in favour of staying, mid-market firms do want further changes to the EU. When asked what other reforms they would like to see, 63% wanted less red tape and gold-plating of EU legislation to make it easier to do business. In particular, those polled wanted to see regulatory off-setting with every new regulation adopted leading to one existing EU regulation removed.
Improving trade agreements to help boost exports was also highlighted by the mid-sized firms surveyed. More than half (52%) want the EU to have a greater focus on trade agreements such as the Transatlantic Trade and Investment Partnership with the US and other high-growth markets like India.
Further liberalisation of markets to make it easier to trade across Europe was also flagged by the mid-market. More than a third (35%) would like to see greater progress with creating a digital single market, making it easier for consumers to buy online across Europe.
Simon Michaels, managing partner at BDO, said: “Exports and international trade are critical to the UK mid-market. These firms are entrepreneurial, have high-growth targets and are focused on international expansion so it’s no surprise that the majority of them support remaining within the European Union.”
The figures are part of BDO’s New Economy campaign which includes a set of policy proposals developed by BDO aimed at putting the entrepreneurial mid-market at the heart of the UK’s economy. The full set of BDO’s policy proposals can be found at www.bdo.co.uk/neweconomy