SME business gains from BREXIT

In Monday’s Telegraph Business section, respected economist Roger Bootle says:

‘Brexit will produce some losers and some winners. Those business leaders who have been pontificating recently may be among the losers. But they do not represent all of British business.

It is noticeable that large numbers of businesspeople have not said anything in public at all. In particular, very few owners and/or managers of small businesses have spoken out.They are predominantly potential winners from Brexit – especially from a full Brexit. They gain little or nothing from the single market but suffer from a welter of EU-driven legislation and regulation.

This factor should be considered against the shape of the British economy. Exports to the EU account for approximately 12pc of our GDP. This means that approximately 88pc of the UK’s GDP is not accounted for by exports to the EU. Yet the costs of EU regulation are felt throughout the whole economy. Those business leaders who are vociferous about EU membership tend to come, unsurprisingly, from the 12pc.’

Roger Bootle is a British economist and a weekly columnist for the Daily Telegraph. He is currently the Managing Director of Capital Economics, an independent macroeconomic research consultancy.

We at Winning Tenders agree: we’re pretty certain that the majority of SME businesses have much to gain from Brexit. In the medium term, we will be able to escape from the bureaucracy of the European Procurement Regulations. As things stand, there’s a conflict between authorities’ wish to buy from local suppliers who buy, employ and spend locally and the EU regulations that say higher value contracts must be advertised throughout the EU. After Brexit we expect that to be rescinded along with much of the red tape that deters SMEs from engaging with the public sector tendering process.

Ian Smith

Photo by Jamie Street on Unsplash

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.